GE Unit Reports Isolated Quote Problems

By Allison Bell

November 24, 2004 at 07:00 PM

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Employers Reinsurance Corp., Kansas City, Mo., says it believes there might be problems with several price quotes it issued at the request of a large insurance broker.[@@]

The company issued the quotes, which involved cases with premiums of less than $1 million, through 1 former employee and 1 current employee at the request of a unit of Marsh & McLennan Companies Inc., New York, Employers Re says.

Employers Re, a unit of General Electric Company, Fairfield, Conn., says it discovered evidence of possible problems with quotes during a 5-week internal investigation.

Employers Re notes that the quotes involved cases that were very small when compared with the company's total annual production of $9.7 billion in insurance business.

"Based on the investigation to date, the issues are isolated and confined," Employers Re says.

Employers Re voluntarily reported the issues to the staff of the New York attorney general's office earlier this month, the company says.

Employers Re has received a subpoena from the New York attorney general's office and is cooperating fully with the New York attorney general's office and other state regulators, the company says.

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