Spitzer Says To Expect More Pleas
Washington
New York Attorney General Eliot Spitzer, who has already secured criminal pleas from six insurance executives in a price-fixing scheme, promised "more to come very shortly" and "many more to come down the road." He did not elaborate as to whether the new guilty pleas will deal with Marsh or some other company.
Mr. Spitzer called the Marsh settlement "wonderful in many respects," noting the company has adopted a new business model and forsaken contingency commissions. He said he did not impose a fine because that money would have gone to the state under New York law. This way, he said, the money will go back to its customers.
Asked whether problems his probe exposed in the insurance industry are endemic or merely the work of a few bad apples, he said, "Well, at a minimum we ran across a few bad bushels."
However, he added, "I will tell you that the structural problems that we unveiled are very real, and those structural problems touched many different companies in many different ways and many different lines of business, and they had a real impact on many consumersAnd so we are continuing to pursue these issues, as are the state commissioners, as are other AGs, and that's as it should be.
Reproduced from National Underwriter Edition, April 29, 2003. Copyright 2003 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.
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