Hartford Fires Two For Non-Cooperation With AG Probe
November 11, 2004
It is reported that two Hartford Financial Services staff members were fired after the company concluded they were not fully cooperating with the New York Attorney General's probe and investigation into insurance industry and Hartford insurance company practices.
The two employees were not identified other than they worked for The Hartford's California property-casualty operations in the company's Los Angeles office. Hartford's Los Angeles and Regional Sacramento Office were contacted and had no comment.
Associated Press reported that they spoke with Joshua King, a Hartford spokesperson who commented Thursday that "Our conclusion that these employees failed fully to cooperate with The New York attorney general gives us no alternative but to part ways with them". "There is simply no room for compromise regarding The Hartford's commitment to cooperate." King would not say how the employees failed to cooperate.
NY Attorney General Eliot Spitzer has issued subpoenas to a number of insurance companies related to his Oct. 14 civil suit indicated against Marsh & McLennan Companies Inc., (Marsh) the country's #1 largest brokerage. The attorney general has accused Marsh, the New York-based brokerage of bid rigging, price fixing and demanding incentive fees from insurance companies in exchange for sending more property and casualty insurance business their way.
The Hartford sells Property & Casualty, Life as well as other insurances and is among several insurance companies indicated as participants in the New York Attorney General's October 14, 2004 lawsuit and complaint.
FBIC, based upon its extensive knowledge of Hartford's widespread bad faith insurance claims practices, complaints from Hartford policyholders, former insureds and complainants, along with sensitive inside knowledge of their bad faith insurance practices, anticipates and expects that there will be more firings yet to come as a result of the New York Attorney General's ground-breaking investigation. It should be interesting to see what if any results will come from the other states Attorney Generals offices investigations who have indicated that they are also investigating the widespread corruption and bad faith insurance practices. FBIC awaits to see the thoroughness and results of the other states ongoing investigations and to see if they are genuine, for real and in in good faith or if they are ineffective and they are just going through the motions to satisfy pressures from their state consumers and constituents. With all of these investigations going on, where are the states Departments of Insurance (DOI)? Probably the same place where they have always been, quiet and hiding behind closed doors.
FBIC on behalf its membership and consumers applauds Attorney General Spitzer for his initial and early progress to date. FBIC will keep you up-to-date on the state Attorney Generals' investigations and their progress or lack thereof.
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