N.J. insurer settles Mass. charges
A New Jersey insurance company has agreed to pay just over $239,000 to settle allegations it offered improper incentives to a Boston-based brokerage firm.
Attorney General Martha Coakley's office said yesterday that Chubb Corp. will pay customers and the state to resolve charges stemming from offenses that go back to 1997.
Warren, N.J.-based Chubb allegedly loaned $3 million to brokerage firm William Gallagher and Associates but offered to forgive the loan if the firm directed enough business to the insurance company.
Authorities say this and other practices gave the brokerage firm a financial interest in the insurance company and distorted competitive bidding processes.
Chubb did not admit wrongdoing. Spokesman Mark Schussel says the company cooperated with investigators and believes its business practices were legal and proper.