Ohio AG sues insurers Ace, Chubb and others
The Ohio Attorney General's Office is suing insurance broker Marsh & McLennan Companies Inc. and four large insurance companies for allegedly violating state antitrust laws.
Attorney General Marc Dann's office said yesterday a suit was filed against New York-based American International Group and Marsh & McLennan, Bermuda-based Ace Limited, New Jerse.-based Chubb Corporation, Conneticutt-based Hartford Financial Services Group and many of the companies' subsidiaries.
The complaint, filed in Cuyahoga County Common Pleas Court, alleges Marsh & McLennan conspired with the insurers to eliminate competition in the commercial insurance industry. Among the claims in the suit are allegations that the insurers offered customers fictitious price quotes that created the impression that competitive bidding had produced the best price.
Dann said in a release that the suit comes after a three-year investigation that already resulted in a $7 million settlement from Zurich American Insurance Co. in October 2006.
"Our investigation has produced evidence of blatant violations of the antitrust laws that have cost Ohio businesses millions of dollars," Dann said in a release.
The state is seeking full restitution for damages generated through alleged overcharges in addition to $500 per day, per defendant for each day the companies were found to have engaged in illegal activity.
The companies also would be required to pay damages equal to three times what Ohio recovers after damage assessments.