Insurance Commissioner John Oxendine is disappointed that Marsh & McLennan “got off the hook” in its settlement with the New York State Attorney General and says his office will continue to investigate overcharges in Georgia.
Oxendine criticized the announcement of an $850 million settlement between Marsh & McLennan and the New York State Attorney General and the Superintendent of the New York State Insurance Department that resolves the actions that were commenced against MMC and Marsh Inc.
“I was pleased to hear that the New York Attorney General and the New York Department of Insurance were able to create a fund for returning overcharges to clients of Marsh McLennan,” Oxendine said. “However, I find it highly questionable whether $850 million is a sufficient amount of restitution when it has been alleged that Marsh McLennan may have overcharged its clients billions of dollars.
“In light of the allegations that have been made by the New York Attorney General’s Office, it is also very disappointing to learn that the New York authorities have let Marsh McLennan off the hook by not taking any disciplinary action against the company itself,” Oxendine continued. “My office is still in the middle of a major investigation into the practices of Marsh McLennan and its affiliated companies.
“It should be noted that the settlement with the New York authorities will in no way alter Georgia’s ongoing investigation and in no way affects any disciplinary action against Marsh McLennan that may or may not be warranted. In summary, we believe that the $850 million settlement with the New York authorities is a very good first step in making clients of Marsh McLennan whole.”
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