Updated at 1:24 p.m., Tuesday, January 29, 2008
Hawaii part of $12.5M AIG insurance settlement
Advertiser StaffHawai'i is one of nine states and the District of Columbia that will share in a $12.5 million settlement with American International Group Inc., which made the agreement to solve allegations about bid-rigging and price-fixing in the commercial insurance market.
AIG said it was agreeing to the settlements to avoid the expense and uncertainty of protracted litigation, and that it was neither denying or admitting liability.
Florida's attorney general released a statement saying the agreement was yet another settlement in a "pay-to-play" tactic used by Marsh & McLennan and other insurance brokers.
It said AIG and several of its insurance subsidiaries allegedly conspired with Marsh and other brokers by submitting fake bids to create the illusion of a competitive bidding process.
Hawai'i previously participated in a $10 million settlement with other states involving The Travelers Companies Inc., which allegedly conspired with Marsh & McLennan and other brokers to create an illusion of a competitive bidding process.