Major insurance companies named

Lawsuit alleges insurers paid broker kickbacks and collected higher premiums.
WASHINGTON (Dow Jones/AP) -- Several major insurance companies are named in a class-action lawsuit alleging they conspired with California insurance broker Universal Life Resources to steer business the broker's way in exchange for kickbacks, according to court papers.
The defendants listed are Aetna Inc., Metlife Inc., Prudential Financial Inc., Cigna Corp., Life Insurance Company of North America and UnumProvident Corp., according to court papers filed in the U.S. District Court for the Southern District of California.
The lawsuit, filed on behalf of people who bought insurance brokered through Universal Life Resources, alleges a scheme to fraudulently market, sell and administer insurance products through employee benefit plans, Hartford, Conn.-based Aetna said Thursday in its third-quarter filing with the Securities and Exchange Commission.
The lawsuit seeks unspecified damages, changes to business practices and other relief for alleged violations of the Racketeer Influenced and Corrupt Organizations Act, also known as the RICO Act, and of contractual and fiduciary duties, according to the report. Aetna said it plans to vigorously defend itself against the action.
Conspiracy claim
According to the lawsuit, Universal Life Resources' clients include mid- to large-sized employers seeking to obtain insurance policies to offer under employee benefit plans.
The lawsuit alleges that rather than providing unbiased brokerage services, Universal Life Resources conspired with the insurers to steer its clients to the insurers in exchange for undisclosed fees and kickbacks. The lawsuit claims the actions allowed the insurers to collect higher premiums than would be paid in a competitive market.
The lead plaintiff in the lawsuit claims to work for one of Universal Life Resources' clients, according to court papers. The suit was filed last Wednesday.
Leading the class-action is San Diego law firm Lerach Coughlin Stoia Geller Rudman & amp; Robbins LLP, home of high-profile trial lawyer William Lerach.
The class-action follows a series of acknowledgments by insurance companies that they have received subpoenas from officials investigating broker compensation in the insurance industry.
New York Attorney General Eliot Spitzer has accused the world's largest insurance broker, Marsh & amp; McLennan Cos., of rigging bids and steering corporate clients to insurance companies that paid it excessive commissions. Spitzer also is investigating the entire insurance industry.
Internal review
In an interview with Dow Jones Newswires on Thursday, Aetna chairman and chief executive Dr. John W. Rowe said the company is conducting an internal review that indicates Aetna is complying with the law.
MetLife spokesman John Calagna said Friday that MetLife will vigorously defend itself against the action, but declined further comment.
UnumProvident spokesman Jim Sabourin said the company is reviewing the lawsuit, but wouldn't comment further. Prudential Financial Inc. spokesman Bob DeFillippo also declined to comment.
Spokesmen for Universal Life Resources and Cigna Corp, the parent of Life Insurance Company of North America, weren't immediately available for comment.
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