The Spitzer enquiry has spread to the US East Coast with the announcement that California attorney general Bill Lockyer has launched investigations into bid rigging by California-based insurers and brokers.
In a statement released on Friday Lockyer said: "Businesses cannot conspire to give themselves an unfair advantage over competitors or harm consumers by keeping prices artificially inflated.
“Any insurance company or broker violating these laws will be held accountable."
Lockyer is encouraging insurer and broker employees to report unlawful practices in their companies. A whistle blower telephone line and email account has been set up.
