At the Bell; California to file suits against insurers.(Late News)

Investment News, October, 2004

The California Department of Insurance said Thursday that it is preparing lawsuits against several national insurance brokers and companies, similar to the bid-rigging and price-fixing suit filed by New York Attorney General Eliot L. Spitzer. The lawsuits are expected to focus on brokers and insurers that deal with em- ployee benefits such as group life and disability coverage, as well as the commercial property-and-casualty insurance that is the focus of the New York litigation.

In addition, California Insurance Commissioner John Garamendi announced steps to create new regulations to prevent insurance brokers and agents from steering clients to insurers that pay the highest commissions but don't provide the best prices and services. The regulations, the...

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