Compliance April 9, 2007

Antitrust Suit Against Insurers and Brokers Dismissed

A federal judge threw out an antitrust lawsuit against dozens of insurance brokers and insurers at some of the largest U.S. firms by policyholders who claimed that the defendants conspired with each other to fix insurance prices, but gave the plaintiffs one last chance to amend their case.
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U.S. District Judge Garrett Brown in Newark, New Jersey dismissed the racketeering and Sherman Act claims in two consolidated lawsuits by property/casualty and employee benefit policyholders, saying that the policyholders failed to prove a conspiracy to restrain market competition.

“While there was an exchange of information about these contingent commission agreements, which plaintiffs allege were a method by which the market or customers were allocated among the insurers, plaintiffs have not shown that the insurers colluded to allocate business,” Brown wrote, Business Insurance reported.

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According to the news source, the court found last year that the policyholder complaints couldn’t hold up the antitrust allegations. The judge then ordered the plaintiffs to file supplementary case statements with additional facts, at which point the brokers and insurers filed for dismissal.

Brown allowed policyholders to amend their complaints or revise their case statements once more within the next 30 days to address the shortcomings the court identified.

Products April 9, 2007

AIG Releases Group Excess Liability Insurance Program

AIG Private Client Group has rolled out a new insurance program designed to help protect the personal assets of highly compensated individuals.
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The admitted Group Excess Liability insurance program, offered by the division of the personal lines property and casualty insurance subsidiaries of American International Group, Inc. (AIG), is designed to help protect the personal assets of those individuals at corporations, law and investment firms, family offices and other organizations with a concentration of high-net-worth members. Its admitted status can benefit policyholders with cost savings and facilitate policy administration for agents and brokers, according to a press release.

AIG Private Client Group’s Group Excess Liability coverage includes:

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  • Up to $2 million in errors and omissions (E&O) coverage for the sponsoring organization to protect against administrative related claims.
  • Worldwide protection for personal injury, including libel and slander, and property damage that encompasses an unlimited number of owned and non-owned vehicles, homes and watercraft up to 99 feet long.
  • Coverage limits up to $50 million.
  • Excess Under/Uninsured Motorist coverage up to $5,000,000.
  • Flexible defense coverage that allows individuals to select defense counsel from the AIG companies’ panel of preeminent firms

“Insufficient liability insurance can put personal assets at risk,” said Charles Williamson, President, AIG Private Client Group. “By packaging the coverage as an executive benefit, we also help employers and association leaders to look after the leaders of their organizations.’

AIG Private Client Group’s admitted Group Excess Liability insurance is currently available to qualifying organizations in Arizona, Colorado, Pennsylvania, Michigan and New Jersey. A non-admitted Group Excess program is available in all other U.S. states.

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