Great American charged by Mass. AG

Martha Coakley, Massachusetts attorney general, filed suit in Suffolk Superior Court against Great American Insurance Group, accusing the insurer of submitting a false insurance premium quote. In 2004, at the request of broker Marsh & McLennan, Great American submitted a false and uncompetitive bid quote for casualty insurance to Analog Devices, a semi-conductor manufacturer in Norwood, Mass, according to the suit. This made another bid from American International Group look competitive. In return, Marsh & McLennan steered another one of Analog Devices’ policies for excess casualty coverage toward Great American, the suit alleged. The bid rigging encouraged the companies to create fake bids to steer business at high premiums to carriers that paid Marsh commissions based on business volume. Marsh faced a lawsuit from the New York Attorney General and Insurance Superintendent back in 2004 for bid-rigging. As a result, Marsh paid up restitution and apologized publicly. Though Great American has provided some reimbursement to Analog Devices, the money does not represent the full amount lost by the company, the attorney general said in the suit. Marsh was not named a defendant in the latest suit by the Massachusetts attorney general. Ms. Coakley charged Great American with engaging in unfair and deceptive acts and unjust enrichment. In response, Great American decried the allegations, saying that the issuance of the quote was lawful. “Great American denies wrongdoing and denies the allegations of the attorney general’s suit,” the company said in a statement. “Great American has directly resolved and been released from any potential issue with the corporate entity relevant to the one quote that is the subject of the suit.” The Cincinnati-based carrier also said that Ms. Coakley’s demands were “unreasonable.”