NEW YORK ATTORNEY GENERAL’S COMPLAINT
Tuesday, October 19, 2004  

On October 14, the New York attorney general filed a complaint against Marsh & McLennan, Inc. and Marsh, Inc. that alleged fraud, securities fraud, and antitrust claims.  Such serious allegations against the world’s largest broker cast a cloud over our industry.  As a result, you may have questions regarding the relationship of Eustis Insurance & Benefits with insurance companies.

The most serious allegations against Marsh deal with (1) steering business to insurance companies with which Marsh had the more lucrative arrangements, without regard for the clients’ interest; (2) utilizing fictitious quotes from insurance companies to deceive clients into believing that true competition had taken place; and (3) threatening insurance companies that would not participate in this course of conduct with the loss of business, and rewarding companies that did participate with future business. 

Eustis Insurance & Benefits does not participate in such “schemes” and practices.

Eustis Insurance & Benefits has contracts with many insurance companies that include profit sharing arrangements based on the overall profitability of the entire book of business placed with the relevant company.  The Placement Service Agreements or Market Service Agreements that are the subject of the New York attorney general’s complaint against Marsh guarantee payments to the brokers. Eustis Insurance & Benefit has no such contracts.

George Sumner

President

Eustis Insurance, Inc.
 
Eustis Insurance, a member of the Independent Insurance Agents of America, is one of the area's largest independent insurance agencies. Founded in 1946, Eustis Insurance has offices in both New Orleans and Mandeville.