DIANE LEVICK, 20 October 2004
Connecticut stepped up its own probe of insurance misconduct Tuesday as Attorney General Richard Blumenthal, convinced that there is bid-rigging and other fraud here, issued at least 20 subpoenas to insurance companies and brokers.
Blumenthal’s latest move follows a lawsuit last week and arrests by the New York attorney general’s office, which is investigating manipulation of bids and questionable payment practices involving insurance brokers and companies.
Blumenthal’s office, aided by the Connecticut Insurance Department, sent about 135 letters in July to Connecticut insurance brokers and agents asking about compensation arrangements with insurers and looking for potential conflicts of interest.
Now the attorney general is taking his probe to the next level, issuing subpoenas to obtain documents and details he would need to bring the hammer down under state antitrust law.
“The focus of our investigation is bid-rigging and price-fixing that essentially cripples competition and raises insurance costs for corporate citizens and ordinary consumers,” Blumenthal said in an interview Tuesday afternoon..
