Spitzer Subpoenas More Insurance Companies Over Broker Fees, Says New York Times

Subpoenas have been issued to more US insurance companies in New York Attorney General Eliot Spitzer's probe into insurance broker fees, according to a report in the New York Times. Chubb Corporation admitted on Monday that it had received a

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Subpoenas have been issued to more US insurance companies in New York Attorney General Eliot Spitzer’s probe into insurance broker fees, according to a report in the New York Times. Chubb Corporation admitted on Monday that it had received a subpoena. Hartford Financial Services Group denied the Times report that they had received a subpoena, and the New York Times corrected the claim. Last month, Marsh & McLennan, Aon and Willis Group all admitted receiving subpoenas as part of Spitzer’s broader investigation into the fees earned by insurance brokers and the relationship between brokers and insurance companies. At issue is whether the fees that insurers pay brokers as an incentive to sell their products constitute a fair business practice, since they would be tempted to push policies that generate the highest profit.

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