FOR IMMEDIATE RELEASE
NEW YORK STATE INSURANCE DEPARTMENT ISSUES CITATIONS TO MARSH & McLENNAN COS., INC. AND MARSH, INC. AS PART OF JOINT INVESTIGATION WITH NEW YORK STATE ATTORNEY GENERALS OFFICE
Superintendent of Insurance Gregory V. Serio today announced that the New York State Insurance Department has issued citations to Marsh & McLennan Companies, Inc. (MMC), Marsh, Inc., and Marsh Global Broking, wholly owned subsidiaries of MMC, and more than 10 other Marsh-related entities, as part of the ongoing joint investigation between the Insurance Department and New York State Attorney General Eliot Spitzer into wrongdoing associated with contingency fee arrangements.
"Our joint investigation with the Attorney Generals office has raised serious questions about the way they have conducted business in New York State. This action today is part of the regulatory response to these concerns," Superintendent Serio stated.
Representatives from MMC and their New York-licensed subsidiary brokerage firms have been directed to appear at the Insurance Department on Nov. 23, 2004 to respond to charges that they used fraudulent, coercive, and dishonest practices and demonstrated untrustworthiness under New York State Insurance Law.
The New York State Insurance Department has the authority to suspend or revoke licenses, seek restitution on behalf of aggrieved parties, and levy monetary penalties against its licensees.
The investigation is ongoing.