Boston-based insurer Liberty Mutual will pay a combined $7.5 million to New York and Connecticut to settle allegations that it steered insurance contracts by paying kickbacks to large insurance brokers. Under the settlement, New York will receive $5.5 million and Connecticut $2 million. The settlement, announced by Connecticut Attorney General Richard Blumenthal, was the result of litigation arising out of the Attorney General’s 2005 investigation of the insurance industry’s business practices. The suit was filed in 2006. It’s one of several suit brought by state prosecutors across the country, most notably in New York by former Attorney General Eliot Spitzer.
Source: Insurance Journal
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