States Sue Insurance Broker Over Kickbacks

Law360, New York (December 19, 2006, 12:00 AM EST) -- Attorneys-general from three states filed lawsuits Tuesday against one of the country’s largest insurance brokerage firms, Acordia, Inc., for allegedly steering consumers to insurers in return for millions in payments.

Suits were filed in Connecticut, Illinois and New York. The suits allege that Acordia, based in Chicago, allegedly signed “secret” agreements in which certain insurers paid Acordia undisclosed commissions in exchange for Acordia steering customers to those "preferred" insurers.

Acordia, a subsidiary of Wells Fargo Bank, didn’t disclose the partnerships to its customers, which the suits...
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