MINN. GOV. PAWLENTY ORDERS PROBE:

Citing concerns that Minnesota businesses and their employees may have been affected by alleged bid rigging, Gov. Tim Pawlenty has asked Commerce Commissioner Glenn Wilson to review the relationship between brokers and insurance companies doing business in the state. The Commerce Department has reportedly been closely monitoring recent activities in other states, including New York, where allegations have arisen that some commercial insurance brokers have accepted illegal payments from insurance companies. “The insurance companies and brokers that are being investigated in other states also do business in Minnesota,” Pawlenty said. “While there have been no complaints about this activity, we need to take appropriate action to ensure that the marketplaces is not being manipulated through under-the-table deals.” Gov. Pawlenty is asking Commissioner Wilson to take appropriate action to determine what, if any, illegal activity has occurred in Minnesota or has affected businesses in the state. If violations of Minnesota law are discovered, insurance companies and agencies licensed to conduct business in the state could face sanctions, including civil and criminal penalties. “Because insurance is regulated by each state, regulators from across the country are now working together to address these issues,” said Wilson. “Minnesota will be involved with any multi-state effort so we can leverage our resources and not duplicate the work of other jurisdictions.”