XL 10th Carrier Subpoenaed
NU Online News Service, Oct. 29, 3:25 p.m. EDT?Hamilton, Bermuda-based XL Capital Ltd. said its subsidiary, X.L America, received a subpoena from New York's attorney general in the ever-widening probe of contingency fee practices.[@@]
The company said it intends to cooperate fully in the investigation and has already begun its own internal investigation "as a matter of prudence."
XL Capital is the ninth company to announce it has received a subpoena. It joins American International Group, Chubb, The Hartford Financial Group, MetLife, Aetna Inc., CIGNA Corp., St. Paul Travelers Companies, UnumProvident and Liberty Mutual. All said they have received subpoenas in New York Attorney General Eliot Spitzer's probe of price-fixing and bid-rigging in return for profitable contingency fee commissions.
Insurance broker Marsh was sued by Mr. Spitzer two weeks ago, a move that lead to the ouster of parent company Marsh & McLennan's chairman and chief executive officer Jeffrey Greenberg. Five executives have been suspended at Marsh and one fired, the company said.
It has also lead to the arrest of three insurance executives, two at AIG and one at ACE, who have plead guilty to misdemeanor charges and are cooperating in the investigation.
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