22 Regulators & AGs Investigating St. Paul Travelers
By Mark E. Ruquet
National Underwriter News
March 18, 2005
St. Paul Travelers is being investigated by 22 government agencies, including the Securities and Exchange Commission and a Canadian regulator, the firm reported.
In a 10-K filing with the SEC, St. Paul Travelers, based in St. Paul, Minn., said it received subpoenas or letters requesting information from 14 states, the SEC, and the Licensing and Market Conduct Compliance Division, Financial Services Commission of Ontario, Canada.
The investigations stem from the ongoing probe begun last year by New York Attorney General Eliot Spitzer which has seen criminal charges and a civil suit alleging that insurers had hidden fee arrangements to have brokers steer business their way.
The carrier said it is cooperating fully with the probes and is undertaking its own review.
According to the release, attorneys general in California, Connecticut, Florida, Massachusetts, Minnesota, New York, Ohio, Pennsylvania and West Virginia have asked for information.
On the insurance regulators side, California, Connecticut, Delaware, Illinois, Iowa, Maryland, New York, North Carolina, Texas, and two agencies in Florida are conducting probes.
Within the past week, SEC filings showed that insurance broker Brown & Brown, based in Daytona Beach, Fla., has received subpoenas or requests for information from 18 states, and Bermuda-based ACE, Ltd. received requests from 12 states.