White Mountains unit subpoenaed in insurance probe
By Lilla Zuill
The Royal Gazette
Posted June 20, 2005
A unit of Bermuda-based White Mountains said it has been subpoenaed by Connecticut Attorney General Richard Blumenthal for information on its dealings with insurance brokers.
OneBeacon Insurance Group, White Mountains’ largest US unit, said in a regulatory filing late on Friday that the Connecticut AG had sent a subpoena “requesting documents and seeking information relating to the conduct of business between insurance brokers and OneBeacon”.
OneBeacon received a similar subpoena from New York Attorney General Eliot Spitzer last December.
The company said it believed the latest subpoena had been received as “part of the ongoing, industry-wide investigation regarding industry sales practices”.
White Mountains said it was cooperating with the regulatory request.
Both Mr. Spitzer and Mr. Blumenthal have been probing insurance industry practices in a high-profile probe of the sector that has also come under scrutiny from the American Securities and Exchange Commission (SEC) and the US Department of Justice.
Another unit of White Mountains is also facing regulatory fire from insurance authorities in Florida.
Sirius International Insurance Corp., a subsidiary of White Mountains Re, was issued a notice of hearing by the Florida Department of Insurance Regulation earlier this year for its alleged selling of health policies without a state license.
Sirius is a non-admitted insurer selling expatriate medical coverage in the US through an exclusive agreement with Indianapolis, Indiana based managing general agency, International Medical Group (IMG).