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November 19, 2004

CALIFORNIA SUES FIVE IN INSURANCE SCANDALS

A California regulator turned up the heat on the insurance industry yesterday, charging four companies and a broker with allegedly hiding millions of dollars in improper commissions paid out in order to win employee-benefit insurance deals.

The suit — against MetLife Inc., Cigna Corp., Prudential Financial Inc., and UnumProvident Corp. — marks a major expansion of the nationwide probe into the insurance industry.

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Posted by Tom Troceen