Connecticut Insurance

The Attorney General of Connecticut transfer of Marsh & McLennan Companies and a unit of the ACE Group of Companies, yesterday accused them of working together to deceive the state and rising costs in a market of $ 80 million for the Workers’ Compensation insurance.

The following query, the New York Attorney General in October, but nothing makes similar accusations that Marsh has a direct payments. Marsh in negotiations with Eliot Spitzer, New York, the Attorney General to try to resolve the complaint.

The action of Connecticut is the scope of studies practices with insurance emphasis on Workers’ Compensation, one of the largest lines of insurance coverage.

Richard Blumenthal, attorney general of Connecticut, said in his investigation of the dark side of suspicion of payments and increased costs for customers of the Workers’ Compensation coverage to other major insurance brokers and insurance companies .

“We have a new field, but it is only a problem of a number of areas in the insurance industry,” said Paul Blumenthal, said in an interview. He went to identify the company, its office was discussed.

The complaint cites e-mails without the application of forces on three unidentified insurance companies saying that she had received applications for grants Marsh, the sale of insurance companies to customers. Marsh customer pays a fee or commission for unbiased recommendations and, after the complaint, were often not aware of the power of supplements.

The New York appeals against Marsh raises the rigging bids and management business with the sale of large insurers other lines in trade insurance payments. In another trial, Mr. Spitzer and Insurance Commissioner California indicted in California, a broker to collect the benefits resulting from poor delivery and management of business the highest paid on insurance companies. Mr. Blumenthal also citations to health care insurers and auto insurers.

“The more we see more, we find with regard to the smuggling and bribes or improper anti-abuse,” said Blumenthal. “The more we return the stones, it seems more problems.”

Chris Winans, an analyst at Lehman Brothers, would not be the way in which the action is likely to prejudice ACE and Marsh, but he said he seemed threatening to the industry. “The bad news is that this is an accusation in a new line of coverage and suggests that we see perhaps a number of cases against brokers and insurance companies , Perhaps much more than we first thought, “he said.

Mr. Blumenthal’s action focuses on business with Connecticut asked Marsh and other brokers, Hagedorn & Company, it is not prosecuted for an insurance company, the takeover of the management and handling fee of 678 employees the state. Marsh on the recommendation of the State agreed to pay 80 million United States dollars, Ace Financial Solutions, the Workers’ Compensation Ace claims and pay a fee of $ 100000 Unknown to the state, said the complaint, Marsh has requested and has received an additional payment of a sum of $ 50000 Ace.

Ace told the state that the $ 80 million to the Workers’ Compensation cases, all payments to brokers. Mr. Blumenthal said he had evidence that the $ 50000 Marsh had come from $ 80 million payment.

The transaction involves a form of insurance often finished insurance. In the case of Connecticut, 80 million dollars, the amount was estimated by the two parties to resolve the Workers’ Compensation claims. For a victory, Ace, we hope to resolve situations as to earn less interest on the $ 80 million, while the settlements were negotiated.

Marsh and ACE indicated that it was the cooperation with Mr. Blumenthal, investigation and will continue to do so. None of the companies, nor Mr. Blumenthal, a decision if both parties had tried to solve the Connecticut case before the complaint was filed.

Mr. Spitzer to investigate in the mutual fund and operate business on Wall Street, analysts, some companies have resorted head outside cities through negotiation. If Mr. Spitzer Marsh continued in October, he said brokerage companies, the biggest in the industry, this was not his cooperation with investigators and was not ready to try new negotiations with the leaders the current Marsh.