Massachusetts v. Travelers Companies (Suffolk Superior Court)
Plaintiff states filed identical complaints and consent orders in their respective state courst. See case listings under other settling states. The complaint alleged that Travelers
participated in a bid rigging scheme in which broker Marsh & McLennan predesignated which insurance company?s bid would ?win? a particular account. To create the appearance of a competitive bidding process, Marsh would instruct certain insurers to submit inflated, intentionally uncompetitive bids. These schemes gave commercial policyholders, including large and small companies, nonprofit organizations, and public entities, the mpression that they were receiving the most competitive commercial premiums available, when they were actually being overcharged.
Additionally, Travelers was involved with a ?pay-to-play? arrangement centered on their
payment of contingent commissions, in addition to standard commissions and fees, to insurance brokers. Contingent commissions, often undisclosed to consumers, provided an incentive for brokers to steer business to the insurer who offered the most lucrative contingent commissions, often in violation of their clients? interests.
States settled for $6 million plus injunctive relief mandating disclosure of types and amounts of compensation.
Oregon v. ACE Holdings, Inc.
Consent decrees filed by states in state court required $4.5 million payment and conduct relief to remedy alleged bid-rigging and false insurance quotes, as well as payment of secret “contingent commissions” to brokers.
Connecticut v. Reiner, Reiner & Bendett
Plaintiff state alleged that Reiner, a law firm, which also sells title insurance, used sham service, rental and other agreements to
conceal $142,200 in kickbacks and unlawful inducements between 2002 and 2005. In exchange, Absolute and Access allegedly steered title insurance business to the law firm. Connecticut law prohibits title insurance agents from paying for referrals.
District of Columbia v. ACE Holdings, Inc.
Consent decrees filed by states in state court required $4.5 million payment and conduct relief to remedy alleged bid-rigging and false insurance quotes, as well as payment of secret “contingent commissions” to brokers.
Texas v. ACE Holdings, Inc.
Consent decrees filed by states in state court required $4.5 million payment and conduct relief to remedy alleged bid-rigging and false insurance quotes, as well as payment of secret “contingent commissions” to brokers.
Florida v. ACE Holdings, Inc.
Consent decrees filed by states in state court required $4.5 million payment and conduct relief to remedy alleged bid-rigging and false insurance quotes, as well as payment of secret “contingent commissions” to brokers.
State of Ohio v. American International Group, et al,, No. 07-633857 (Oh. Ct. of Comm. Pleas, Cuyahoga Cty. 2007)
Plaintiff state alleged bid-rigging and fictitious quotes in suit against insurance brokers and major commercial insurers. Settled on behalf of 26 public entities for $9 million (AIG) plus $4.75 million (Marsh). Other cases pending
Maine v. Pike Industries, Inc.
Plaintiff state challenged merger of two aggregate and hot mix asphaltcompanies which would allegedly reduce competition for paving projects in southern Maine. Pke, the acquiring company, agreed to 1. Sell stone mined from its Westbrook Quarry in sizes appropriate for use in specified Maine governemtn projects to any firm intending to use the stone to produce hot mix for use in those projects for the next four years and at a price not to exceed the price it charged in 2006, adjusted annually; 2. Enter into an agreement (subject to AG involvement) permitting any firm performing a State of Maine Department of Transportation project to locate a portable hot mix plant into Pike’s Westbrook Facility also for the next four years;
3. Provide written notice to the Attorney General at least sixty (60) days prior to acquiring an ownership or controling interst in aggregate resources or hot mix asphalt
plants located in the State of Maine from firms engaged in the building and maintenance of roads; and pay $20,000 in investigative costs.
Connecticut v. Guy Carpenter & Co., No. HHD-CV-07-40433778 (Conn. Super. Ct. Hartford Dist. 2007)
Plaintiff state alleged a series of conspiracies within the reinsurance industry, principally led by broker Guy Carpenter & Company, LLC, to fix prices and terms on reinsurance contracts purchased in Connecticut and throughout the United States and to mislead primary insurance company clients regarding Guy Carpenter?s role as an agent and underwriter for numerous reinsurance companies. Complaint alleges that Guy Carpenter conspired with numerous reinsurers to fix prices and output, foreclose competitors from access, allocate markets and eliminate competition in the reinsurance market.
People ex rel. Madigan v. Carle Clinic Association, P.C., No. 07h115 (Champaign Cty. 6th Jud. Dist. 2007)
State alleged two clinics conspired to boycott Medicaid patients by adopting identical policies through which they refused to accept Medicaid patients: (1) who were not already registered with the clinic or (2) who had not seen a clinic physician for at least three
years. They allegedly sought to increase the Medicaid reimbursement rates and to accelerate reimbursement payments from the State of Illinois. Settlement reached in which Carle will increase Medicaid patient load and pay local health centers who had to treat more patients because of the policies. In April 2009, Christie Clinic settled with the state, agreeing to increase the number of Medicaid patients it will accept for primary health care services to 8,500 over the next
three years; will not deny Medicaid patients primary care services because of existing medical debt incurred from March 2003 through September 2007 – the period during which these patients were turned away as qualified Medicaid patients and were charged for health care services; and wil pay, over three years, $120,000 to Frances Nelson Health Center to help fund its primary care services for low-income patients
and $34,000 to the Champaign Urbana Public Health District to help pay for its dental program for low-income children. Both Christie and Carle Clinics are committed to accept more than 17,000 Medicaid patients in the intial year, growing to 20,000 over the next three years.