Return to California Insurance Broker Fraud news on SSEM.COM
California probe of insurance industry corruption advanced today when Universal Life Resources, a large California-based employee benefits brokerage firm, entered into a consent decree and agreed to cooperate with prosecutors, the lead attorney for the California State Insurance Commissioner said.
The lawsuit filed by Insurance Commissioner John Garamendi at the Superior Court in San Diego states that Universal Life Resources and other affiliates participated in a scheme to steer clients to buy insurance products from the insurers who provided undisclosed compensation to Universal Life Resources. The lawsuit also names Universal Life Resources' CEO, MetLife, Cigna, Prudential, and UnumProvident in that they all allegedly violated California insurance laws and regulations.
The suit also singles out a practice known as "low-hanging fruit" in which the insurance companies push their clients with whom they have direct contracts to Universal Life Resources, in exchange for Universal Life Resources steering their clients to insurers. The result "was millions of dollars in undisclosed fees for Universal Life Resources and hundred of millions of dollars in premiums to the insurance companies, even though Universal Life Resources positioned itself as providing independent and unbiased advice to their clients" the lawsuit charged.
The consent agreement and permanent injunction excludes Universal Life Resources from further prosecution or fines by the State of California, but it requires them in writing to "fully and timely cooperate" in the state's investigation.
If you purchased insurance through or were a stockholder in any insurance broker, even if not listed above, please use the form below to contact our law firm for a free consultation to determine if you have a claim as a result of purchasing overpriced insurance.
Copyright © 1999-2008 Specter Specter Evans & Manogue, P.C.
Terms of Use | Privacy Policy