Associated Press
ST. PAUL -- St. Paul Travelers Cos. said Tuesday it has been subpoenaed by the New York attorney general for documents relating to its business practices in a wide-ranging investigation into the insurance industry.
The company said documents were requested "relating to the offer or sale of 'non-traditional,' or loss mitigation, insurance products." It's the company's second subpoena in less than a month.
State and federal regulators have been looking into whether insurance companies sold products that weren't really insurance, but were aimed at helping companies smooth out earnings.
New York Attorney General Eliot Spitzer is suing insurance broker Marsh &; McLennan Cos. for alleged bid rigging. He has made broad charges that insurance brokers steered business to companies that pay the highest broker fees, to the detriment of clients.
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Spitzer's investigation has included inquiries to many insurance companies nationwide. It has been seized on by other state attorneys general and regulators, and in a press release, St. Paul Travelers said it expected a similar request from the Securities and Exchange Commission.
