USI Gets Conn. Subpoena

The broker said it would cooperate fully with the request for documents and information.

Yesterday, Itasca, Ill.-based broker Arthur J. Gallagher said it received a subpoena from Mr. Blumenthal's office. The broker also noted it was ending the practice of accepting incentive payment contingency fees.

Mr. Blumenthal said he has now issued 35 subpoenas in his investigation, which is mirroring New York Attorney General Eliot Spitzer's. He declined to comment on whether he is close to bringing any actions.

In a civil suit Mr. Spitzer alleged that executives at Marsh manipulated the placement of insurance contracts in return for profitable contingency fees. His action led to the resignation of Jeffrey Greenberg, Marsh & McLennan's chairman and chief executive officer, which is the parent company of Marsh.

USI is scheduled to hold an investor's conference call tomorrow as part of its third quarter financial release.

Meanwhile, in London UK-based broker Jardine Lloyd Thompson Group, PLC, said it is advising clients it will no longer enter into Placement Service Agreements and Market Services Agreements from 2005 on. The firm added that the fees do not exceed 2.5 percent of its revenues.

"Recent events have all the hallmarks of being a defining moment in the history of our industry," JLT said in a statement. "If as a result of this investigation, a more level playing field is established for the industry, this will clearly be of benefit to our clients and JLT."