Press Release December 14, 2004 OAG & DISB Launch a Joint Investigation into the Business Practices of Area Insurance Companies Washington, DC. - Today, Attorney General Robert Spagnoletti and Insurance Commissioner Lawrence Mirel announced a joint investigation into possible bid rigging and other deceptive practices of insurance companies and insurance brokers operating in the District of Columbia. The simultaneous civil and criminal investigations include antitrust attorneys from the Office of the Attorney General (OAG) as well as examiners and attorneys from the Department of Insurance, Securities and Banking (DISB). Insurance Commissioner Lawrence Mirel says the investigation is prompted by a similar action in New York in which that state's Attorney General alleges Marsh & McLennan, one of the nation's biggest insurance brokers, led a broad scheme involving bid rigging and other harmful deceptions of insurance customers. "A civil complaint filed in New York Supreme Court charges Marsh and several insurers with organized bid rigging and misrepresenting the existence of a competitive marketplace to insurance consumers. Marsh is also accused of entering into arrangements that blocked or discouraged real competition, resulting in higher insurance premiums," says Mr. Mirel. Attorney General Spagnoletti says the investigation could be far-reaching. "In light of the recent allegations regarding insurance companies and brokers by the New York State Attorney General, it is incumbent on our agencies to investigate whether there has been any deceptive or otherwise unlawful behavior by insurance providers and brokers that has affected consumers in the District of Columbia. My office is working with the DISB, as well as other authorities from other states, to protect the citizens of the District of Columbia and businesses that purchase insurance." The OAG is focusing on bid rigging, while the DISB is focusing on whether brokers or insurers breached their fiduciary obligations and made misrepresentations or otherwise engaged in practices that deceived and harmed insurance customers. Those with information about possible bid-rigging (or price-fixing) may reach the investigative staff by telephone at (202) 727-6241 or (202) 727-4170 or by mail at The Office of the Attorney General, Consumer and Trade Protection Section, 441 Fourth Street, NW, Suite 450N, Washington, DC 20001. Those with information about deceptive or other improper behavior by insurance companies or brokers should contact the Office of Legal Affairs at the Department of Insurance, Securities and Banking by telephone at (202) 727-8000 or by mail at 810 First Street, NE, Suite 701, Washington, DC 20002.