Connecticut Attorney General Richard Blumenthal has sued insurance broker Marsh & McLennan Inc., and insurance provider ACE Financial Solutions Inc., for a scheme in which ACE allegedly paid Marsh a secret $50,000 commission to steer an $80 million workers compensation state contract to the company.
According to the complaint, Marsh never told the Department of Administrative Services, which paid the company $100,000 to act as its advisor on the contact, about the $50,000 or any additional payments. Marsh solicited and accepted the $50,000 commission, even though the DAS clearly expected the company to accept no additional fees, according to Blumenthal.
The AG also claimed that Marsh failed to inform the DAS that ACE was in serious financial difficulty at the time it sought the contract.
Blumenthal’s action seeks actual and punitive damages, information allowing determination of how much Marsh was falsely paid and reimbursement for legal and investigative expenses. The lawsuit is the first of a series of legal actions that Blumenthal expects to bring in his investigation into the insurance industry.
Was this article valuable?
Here are more articles you may enjoy.
AIG’s Zaffino: Outcomes From AI Use Went From ‘Aspirational’ to ‘Beyond Expectations’ 
AIG Underwriting Income Up 48% in Q4 on North America Commercial 
Florida Insurance Costs 14.5% Lower Than Without Reforms, Report Finds 
Trump Demands $1 Billion From Harvard as Prolonged Standoff Appears to Deepen From This Issue
