Massachusetts v. Great American Insurance Group (Suffolk Superior Court)
State complaint alleged that in 2004, at the request of insurance broker Marsh & McLennan, Great American submitted a fake and intentionally uncompetitive quote to Norwood based semiconductor manufacturer Analog Devices. Great American submitted this fake bid to make another insurance company’s bid look competitive. In return for this favor, Marsh & McLennan steered another one of Analog Devices? insurance policies to Great American at a pre-determined price. Insurers such as Great American paid Marsh & McLennan lucrative contingent commissions based on the volume of business Marsh & McLennan placed with them. The state sought restitution, civil penalties, injunctive relief and costs. In May 2009, the case settled Under the terms of the settlement, Great American is required to pay $60,000 to Analog Devices and $116,000 to the state. The agreement also requires Great American to undertake conduct reforms aimed at preventing insurance bid rigging in excess casualty insurance. Among other
things, Great American is specifically prohibited from colluding with brokers or other insurance companies to unlawfully fix insurance prices and is required to retain certain records concerning its bidding practices.
Oregon v. Travelers Companies (Multnomah County 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.
Minnesota v. Waste Management of Minnesota (Ramsey Cty. Dist. Ct. 2008)
Plaintiff State alleged monpolization in three counties as a result of evergreen contract provisions by Waste Management, which had 80-90 percent of the waste hauling market. Waste Management agreed to change its contract renewal terms.
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.
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.
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.
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
