Delphi Suspends Two In Broker Probe

NU Online News Service, Jan. 3, 1:20 p.m.EST?Delphi Financial Group Inc., an employees benefitservices company, said it suspended two of its employees after aninternal investigation of contracts brokered through Marsh &McLennan uncovered improper conduct.[@@]

In a statement, the Wilmington, Del.-based company said itsreview identified "certain potential issues concerning pastinsurance solicitation practices" that involved a subsidiary,Safety National, based in St. Louis, and New York-based MMC.

The company said the instances are limited in number and involvea "modest amount of premium."

The two employees suspended were responsible for the company'srelationship with MMC. Additional action may be taken after thereview is complete.

"The company believes that the senior of these employees hadbeen involved in the practices at issue with Marsh in his formeremployment prior to joining Safety National in the summer of 2002,"the company said in a statement. "These practices were neitherknown to, nor approved by Safety National management."

Delphi said it has reported its findings to the office of NewYork State Attorney General Eliot Spitzer and the MissouriDepartment of Insurance.

The issue grows out of what has become a national investigationinto abusive insurance placement practices alleged by Mr. Spitzerin a suit filed against MMC in October. Among the allegations, anMMC unit is accused of manipulating the contract bidding process infavor of those carriers paying high, volume-driven contingentcommission fees.