The attorneys general of Connecticut, New York, and Illinois charge in a lawsuit that Acordia Inc., Wells Fargo & Co.'s insurance brokerage arm, referred individuals to insurers in return for "millions in secret payments."
Connecticut Attorney General Richard Blumenthal said in a news release issued Tuesday that the Chicago company received undisclosed commissions of about $200 million from 2000 through 2005.
The complaint, filed in U.S. District Court in Connecticut, says Acordia signed agreements in which certain insurers paid undisclosed commissions in exchange for Acordia's steering customers to them. It alleges that Acordia's practices harmed consumers as well as insurers that were not part of Acordia's preferred group of carriers.
By August 1999, the suit says, Atlantic Mutual, Chubb, The Hartford, Travelers, and Royal SunAlliance had all agreed to participate in the plan.
Acordia is the fifth-largest insurance brokerage company in the world and the largest bank-owned insurance brokerage company in the United States, with over 150 offices in 38 states. Its 4,500 insurance professionals place more than $8.5 billion of risk premiums.
Acordia did not return calls seeking comment.
