Charges of Insurance Broker Conflicts of Interest: How to Protect Your Interests
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On October 14, 2004, policyholders learned that New York Attorney General Eliot Spitzer had concluded that the leading commercial insurance broker, Marsh & McLennan, was at the center of a scheme to steer policyholders and manipulate and inflate the bidding process for insurance in exchange for substantial payoffs from favored insurers, to the detriment of clients. Similar charges have been brought by the California Insurance Commissioner against ULR, a leading broker of company-sponsored benefit plans. The New York Attorney General has stated that such misconduct was widespread throughout the insurance industry. More than 20 states now have launched their own investigations, and lawsuits against the leading insurance brokers have begun to proliferate. In the aftermath of these charges, policyholders are confronted with numerous questions. This seminar addresses the concerns raised by Morgan Lewis clients concerning these developments.