Safety National Casualty Suspends 2 Employees Following Internal Probe of Dealings with Marsh

January 4, 2005

Safety National Casualty Corp., an excess workers’ compensation insurer based in Missouri, has suspended two of its employees for past insurance solicitation practices involving Marsh & McLennan.

The action came after an internal investigation by Safety’s parent, Delphi Financial Group of Wilmington, Del. Delphi said it has reported the instances to the Missouri Department of Insurance and to New York Attorney General Eliot Spitzer, whose charges against Marsh last October of bid-rigging and account steering touched off a wide inquiry by states into insurance brokerage practices and compensation.

“The instances that the company has been able to specifically identify in this regard are limited in number and involved modest amounts of premium,” according to the company’s statement on the suspensions. “The two employees responsible for Safety National’s relationship with Marsh have been suspended pending the completion of the internal review and additional corrective steps have been implemented.”

The employees were not identified.

The company said it now believes that the senior of the two employees had been involved in the practices at issue with Marsh in his former employment prior to joining Safety National in 2002.

Delphi has previously acknowledged receiving subpoenas from the Illinois Division of Insurance, the North Carolina Department of Insurance and Spitzer as part of those states’ investigation of insurance brokerage.

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