Attorneys Suing Brokers Spin The Web For Clients

By Mark E. Ruquet

NU Online News Service, Nov. 19, 2:58 p.m. EST?The cadre of law firms filing class action suits against insurance brokers and carriers are reaching into cyberspace to find more clients.[@@]

A search for articles or information on the current insurance industry scandal, involving allegations of broker bid-rigging, anti-competitive schemes and steering of customers, will bring up material with ads attached that solicit customers for attorneys offering to sue brokers.

One of the legal groups with ads linked to articles and reports of broker misdeeds directs viewers to a Web site called ClassActionConnect.com.

Another firm using Web site links is the law firm of James Hoyer Attorneys at Law.

More sites where individuals can go to contact an attorney concerning a complaint include ClassActionAmerica.com, Lieff Cabraser Heimann & Bernstein, LLP, or Big Class Action.com.

The sites ask visitors to fill out an address and state their case in a box, and e-mail it to an attorney. The sites also list other noteworthy legal efforts going on against pharmaceuticals, doctors and others.

One of the sites, Big Class Action (bigclassaction.com), a Vancouver, British Columbia, Canada-based company, does not advertise this way, but still attracts thousands of potential complainants each day, said Bill Frazzetto, director of marketing for the online company. He said the company has been in existence for three years.

Big Class Action's site lists suits against broker Arthur J. Gallagher, Marsh Inc. parent Marsh & McLennan Companies, and Ace Ltd. insurance.

Mr. Frazzetto said Big Class Action's contacts are not done with linked ads and mostly come from a newsletter and visitors to the site. After a complainant fills out the form, the data base sends the information to an attorney. He said people who would normally not seek out an attorney are more willing to fill out a form and e-mail it. The site receives between 3,000-to-5,000 complaints a week, he noted.

While he had no figures, he did say that there are a growing number of complaints coming through the site related to civil allegations against Marsh & McLennan and Aon Corporation, the two insurance brokerage firms that have been a focus of the investigation by New York Attorney General Eliot Spitzer and others pursuing the broker investigation.

Big Class Action tells visitors to its Web site that, "Allegedly, leading insurance brokerage firms have steered unsuspecting clients to insurers who would pay them the highest commissions, and that the firms solicited rigged bids for insurance contracts.

"Allegedly, insurance brokers have received special payments from insurance companies that were above and beyond normal sales commissions. These payments?known as "contingent commissions"?were labeled as compensation for "market services" but were, in fact, rewards for the business that insurance brokers steered to insurance companies.

"It is also alleged that insurance brokers sometimes solicited fake bids in order to deceive its customers into thinking that true competition had taken place. Insurance brokers such as Marsh McLennan Cos., ACE, AIG, Aon Corp, Willis Group Holdings, Arthur J. Gallagher, Kaye Insurance Associates, National Financial partners, The Hartford and Munich American Risk Partners may have been involved in such actions.

"If you feel you qualify for damages or remedies that might be awarded in this possible insurance class action please fill out the form below."

Mr. Frazzetto said there is a disclaimer on the site explaining that the complainant may not be contacted by an attorney, and that attorneys are under no obligation to contact the filer. The information filed goes directly to the attorney and is not sold to anyone else, he added.

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