New York Attorney General Eliot Spitzer broadened his probe into insurance brokerage fees to include an examination of health and life insurance companies. The attorney general served Cigna Corp. with a subpoena seeking information about "communications with and payments to brokers," a Cigna spokesman said. The insurer will cooperate, the spokesman said. Aetna also received a subpoena demanding more information about its compensation of insurance brokers. At issue is whether brokers are improperly steering business to the insurers that pay the highest fees, on top of commissions, rather than seeking the best deals for customers. Spitzer launched an investigation in May, focusing on the practice by property casualty insurance companies of paying fees to brokers with large corporate and government clients. He filed a civil lawsuit last week against Marsh & McLennan Cos., the nation's leading insurance broker, accusing it of cheating customers by taking payoffs from insurance companies to steer corporate clients their way. -- by the Associated Press
N.Y. probe of broker fees extends to health insurers
Send us a letter
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.
Recommended for You