GREAT AMERICAN, GALLAGHER’S TPA HEAR FROM SPITZER:

Cincinnati-based American Financial Group Inc. announced that its property/ casualty insurance subsidiary, the Great American Insurance Co., has received a subpoena from the New York Attorney General Eliot Spitzer’s office requesting information concerning the insurer’s business practices in writing legal malpractice insurance. The company said it believes the requests are part of the sweeping probe of industry practices kicked off by Spitzer’s lawsuit against Marsh & McLennan Cos. Great American said it intends to cooperate with the Attorney General’s investigation and knows of “nothing illegal or improper” in its business practices.

Meanwhile, Itasca, Ill.-based Gallagher Bassett Services Inc., a third-party administrator and a wholly-owned subsidiary of Arthur J. Gallagher & Co., received a subpoena from the office of New York Attorney General Eliot Spitzer requesting information in connection with an investigation it is conducting. The subpoena does not seek information concerning Gallagher’s insurance brokerage operations. As of press time, Gallagher has not received a subpoena from Spitzer’s office in connection with its insurance brokerage operations, nor has it been named in any proceedings filed by Spitzer. Similar to many other participants in the insurance industry, Gallagher has received subpoenas and requests for information from various other state attorneys general and from state departments of insurance regarding Gallagher’s insurance brokerage operations. Gallagher said it is cooperating with all such inquiries.

Topics A.J. Gallagher