CONN. WIDENS PROBE TO TOWNS:

Connecticut Attorney General Richard Blumenthal has expanded his investigation into allegations that insurance bids were rigged by examining whether unlawful practices have affected municipalities in the state. In a letter to each of Connecticut’s mayors and first selectmen, Blumenthal has asked for information on insurance they purchased over the past five years. He has also asked for the name of any insurance broker that cities and towns used and the names of insurance companies that provided coverage. “This investigation is aimed at uncovering and pursing potential bid rigging and other unlawful practices that may have stifled competition and caused significant harm to unknowing insurance customers, including municipalities,” Blumenthal wrote in the letter sent to all 169 cities and towns. The industry probe began when New York Attorney General Eliot Spitzer last month sued brokerage firm Marsh & McLennan Cos., accusing it of colluding with insurers to rig bids for commercial and public sector policies. Blumenthal said he does not know of allegations by municipal officials who believe bid rigging or other unlawful practices detailed in Spitzer’s lawsuit have occurred. “We haven’t received complaints, but the victims of these abuses would be very unlikely to know of bid-rigging or price-fixing,” he said.