Business Insurance reports that, in the wake of New York Attorney General Elliot Spitzer, California's Attorney General Bill Lockyer is launching his own investigation into insurance brokers' practices, particularly allegations of bid rigging. In support of his investigation, AG Lockyer is soliciting tips from employees and clients of large brokers, and has set up a rather heavy-handed e-mail address to which they can be submitted:
Insurer and broker employees and their clients can report unlawful practices by calling 888-451-6298, or they can send e-mail to insurancewhistleblower@doj.ca.gov, Mr. Lockyer said.
(Italics in original.)
Elsewhere, Walter Olson provides an update on plans for California's Department of Insurance to refer enforcement litigation against brokers to a high-profile San Diego law firm, and the ethical questions attendant to that proposal. [Aren't Democratic officials supposed to be against outsourcing...? Just asking.]
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