A second US insurer has been sued by New York attorney general Eliot Spitzer for allegedly rigging the insurance market to fatten its profits.
A lawsuit has been filed against California-based Universal Life Resources (ULR) accusing it of receiving corrupt payments for steering its clients towards certain insurers.
In October Spitzer launched an investigation into bid-rigging and steering at the world's largest insurer Marsh & McLennan Companies (MMC).
Since the lawsuit was filed, MMC replaced its chairman and several senior executives. It has also downsized its worldwide workforce by 5%, cutting 280 jobs in the UK.
The lawsuit against ULR alleges that two-thirds of its $25m revenues in 2003 came from hidden fees paid by insurers from steering clients towards them.
The insurer specialises in employee health insurance and life cover
In a statement, Spitzer said his latest filing demonstrated that "the corrupt practices first laid bare in the Marsh suit are present in additional sectors of the industry".
