Washington, DC - Interim Attorney General Eugene A. Adams announced today that the District has reached an agreement with the commercial insurance firm, Zurich American Insurance Company, to allow the Attorney General to monitor the company's adherence to promised business reforms.
The agreement resolves allegations that Zurich's practices - such as submitting fictitious bids at the request of insurance brokers - facilitated bid-rigging and market allocations. The District alleged that these practices resulted in artificially inflated prices for insurance policies sold to businesses that were clients of the insurance brokerage firm March & McLennan Companies, Inc. and other brokers.
On August 11, 2005, the Office of the Attorney General announced a separate agreement with Marsh & McLennan, which allows the Attorney General to monitor the company's compliance with business reforms agreed to as part of a settlement reached earlier in the year with New York Attorney General Elliot Spitzer.
"As in the settlement with Marsh, the settlement with Zurich does not resolve any private claims that District-based companies may have," said General Adams. "The agreed reforms bring greater transparency and fairness to commercial insurance markets - and that is of ultimate benefit to District businesses."
In addition to the District, eleven states are announcing settlements with Zurich today, including Maryland and Virginia.