From the Associated Press via the St. Louis Post-Dispatch: "U.S. enters investigation of AIG insurance practices," by Eileen Alt Powell--
[Eliot] Spitzer's investigation into the insurance industry has focused on contingent commissions, known also as placement-service or market-service agreements.Spitzer, in filing the civil suit against Marsh & McLennan, called them "payoffs" and also accused the insurance brokerage of bid rigging. The practices, Spitzer said, forced business clients to pay more for property and casualty insurance than was fair.
Some analysts believe Spitzer may expand his investigation to include "tying," which is the practice by which insurance companies hand over their reinsurance needs in exchange for future referrals for their primary insurance.
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