Berkley Finds Questionable Practices
By Mark E. Ruquet
NU Online News Service, Dec. 27, 10:50 a.m. EST?W.R. Berkley Corp. has announced that an internal investigation unearthed questionable conduct in one of its insurance units.[@@]
"As a result of our [internal] investigation, a single insurance operating unit reported certain limited instances of conduct which could be characterized as involving inappropriate solicitation practices," the Greenwich, Conn.-based insurer said in a statement.
Berkley said it is addressing the situation by "implementing certain additional internal procedures" and by "taking other corrective action."
The company said it began its own internal investigation shortly after New York Attorney General Eliot Spitzer began his own probe of the industry.
Since its investigation started, Berkley said it has received information requests from various "state insurance regulators and other state authorities." The inquiries have sought information about inappropriate solicitation activities, producer compensation practices and the underwriting of legal malpractice insurance. The company said it is cooperating with the requests.
When contacted for his reaction, William R. Berkley, chairman and chief executive officer of the carrier, said he did not wish to comment further on the news release.
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