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October 14, 2004

Spitzer Sues Marsh & McLenna, AIG and Others Alleging Brokers Are Taking Payoffs From Cos.

New York Attorney General Eliot Spitzer sued insurance giants Marsh & McLennan, American International Group and several others Thursday, alleging policy brokers have been taking payoffs from insurance companies to steer corporate clients their way rather than get the best prices, as they are required.

Two insurance company executives were expected to plead guilty to participating in the illegal conduct and are expected to testify in future cases, Spitzer said in announcing the broader investigation into whether brokers and companies violated fraud and antitrust laws and regulations.

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Posted by Tom Troceen