Spitzer Subpoenas General Re, Endurance Specialty

By Michael Ha

NU Online News Service, Jan. 7, 1:09 p.m. EST?New York Attorney General Eliot Spitzer, continuing his probe into insurance business practices, served subpoenas this week to Berkshire Hathaway's General Re Corporation and Endurance Specialty Holdings.[@@]

General Re, the reinsurance business unit of Omaha, Neb.-based Berkshire Hathaway Inc., said it received a subpoena from Mr. Spitzer's office yesterday.

The company said the request deals with documents and information relating to non-traditional or loss mitigation insurance products, and the materials requested are virtually identical to those already asked for by the Securities and Exchange Commission last week.

"Berkshire Hathaway and General Re will cooperate fully with the New York State attorney general," the company stated.

Yesterday, Mr. Spitzer also sent a subpoena to Endurance Reinsurance Corporation of America, the U.S. unit of Bermuda-based Endurance Specialty Holdings Ltd.

The Endurance Specialty spokesperson told National Underwriter that Mr. Spitzer's office has requested documents in connection with the probe into contingent commission agreements for broker payments.

Among other things, the subpoena seeks documents concerning efforts by any insurance broker to exclude or limit an insurer's access to the insurance market and documents concerning efforts or requests by any broker to manipulate bids or price quotes, or submit false or inflated bids or price quotes in insurance markets.

The Endurance Specialty representative noted that her company has worked with Marsh & McLennan Companies. "Marsh is one of the largest brokers in the world, so they are one of the brokers we've worked with," the representative said, but she emphasized that Endurance has not been named in any lawsuits stemming from the investigation.

Marsh has been accused in a civil suit by Mr. Spitzer's office of accepting fee payments that were payoffs for steering business to insurers who were part of a price-fixing scheme.

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Spitzer Subpoenas General Re, Endurance Specialty

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