Tuesday, October 19, 2004

U.S. insurance inquiry widens

U.S. insurance inquiry widens: "U.S. insurance inquiry widens
By Joseph B. Treaster The New York Times Wednesday, October 20, 2004
NEW YORK An investigation into the insurance business is expanding as Eliot Spitzer, the New York State attorney general, increasingly turns his attention to whether U.S. corporations and their employees are paying more for life, disability and accident insurance than they should be.
In California, John Garamendi, the state insurance commissioner, said on Monday night that he, too, was concerned about extra costs to individuals for life, disability and accident insurance and that he was considering legal action against at least one broker and several insurance companies that sold employee benefits.
While the current focus of the New York investigation is on bid-rigging and price-fixing among commercial insurance brokers and insurance companies, investigators say Spitzer is also pursuing reports of payoffs that may increase coverage costs for tens of millions of people across the country.

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