ECONOMICS REPORT - Officials Investigate Competition in the
ECONOMICS REPORT - Officials Investigate Competition in the U.S. Insurance Industry
By Mario Ritter
Broadcast: Friday, October 22, 2004
This is Bob Doughty 1 with the VOA Special English Economics Report.
In a fair market, businesses compete to provide products and services to buyers. Competition is supposed to keep down prices. Now, the top law enforcement official in New York State is investigating competition in the insurance industry.
Attorney General Eliot Spitzer brought civil action last week against the biggest insurance broker 2 in the world. Marsh 3 and McLennan Companies is accused of cheating buyers. These are mostly businesses, but also local governments and some individuals.
Insurance is a guarantee against risk. Insurance companies pay for losses when something bad happens. There are many kinds of policies, such as automobile 4 insurance, fire insurance and health insurance.
Brokers 5 bring together buyers and sellers. The job of an insurance broker is to collect competing offers, called bids, from insurance companies. Buyers then choose the best one.
Mister Spitzer says Marsh directed buyers to companies from which it received special payments. These are known as "contingent 6 commissions." Also, he says Marsh at times requested false bids from insurance companies, to create the appearance of real competition.
Several large insurance companies are named, but not charged, in the action. These include Ace 7 and A.I.G., the American International Group. A.I.G. is the world's largest insurance company. Two officials from A.I.G. and one from Ace said they are guilty of criminal charges in connection with the case. Other companies are still under investigation 8.
A.I.G. and Ace both say they will no longer pay contingent commissions to brokers. And Marsh says it will no longer accept such payments.
Marsh announced the immediate 9 suspension of "market service agreements" with insurance companies. It says these agreements provided eight hundred forty-five million dollars last year. That was twelve percent of all the money from its risk and insurance services. Marsh and McLennan says it takes the accusations 10 of wrongdoing very seriously.
The New York investigation has led California Insurance Commissioner 11 John Garamendi to warn of legal action in his state against the industry.
Eliot Spitzer is already known for reaching big settlements in civil cases against financial companies accused of cheating investors 12.
This VOA Special English Economics Report was written by Mario Ritter. This is Bob Doughty.
- Most of successful men have the characteristics of contumacy and doughty.绝大多数成功人士都有共同的特质：脾气倔强，性格刚强。
- The doughty old man battled his illness with fierce determination.坚强的老人用巨大毅力与疾病作斗争。
- He baited the broker by promises of higher commissions.他答应给更高的佣金来引诱那位经纪人。
- I'm a real estate broker.我是不动产经纪人。
- There are a lot of frogs in the marsh.沼泽里有许多青蛙。
- I made my way slowly out of the marsh.我缓慢地走出这片沼泽地。
- He is repairing the brake lever of an automobile.他正在修理汽车的刹车杆。
- The automobile slowed down to go around the curves in the road.汽车在路上转弯时放慢了速度。
- The firm in question was Alsbery & Co., whiskey brokers. 那家公司叫阿尔斯伯里公司，经销威士忌。 来自英汉文学 - 嘉莉妹妹
- From time to time a telephone would ring in the brokers' offices. 那两排经纪人房间里不时响着叮令的电话。 来自子夜部分
- The contingent marched in the direction of the Western Hills.队伍朝西山的方向前进。
- Whether or not we arrive on time is contingent on the weather.我们是否按时到达要视天气情况而定。
- A good negotiator always has more than one ace in the hole.谈判高手总有数张王牌在手。
- He is an ace mechanic.He can repair any cars.他是一流的机械师,什么车都会修。
- In an investigation,a new fact became known, which told against him.在调查中新发现了一件对他不利的事实。
- He drew the conclusion by building on his own investigation.他根据自己的调查研究作出结论。
- His immediate neighbours felt it their duty to call.他的近邻认为他们有责任去拜访。
- We declared ourselves for the immediate convocation of the meeting.我们主张立即召开这个会议。
- There were accusations of plagiarism. 曾有过关于剽窃的指控。
- He remained unruffled by their accusations. 对于他们的指控他处之泰然。
- The commissioner has issued a warrant for her arrest.专员发出了对她的逮捕令。
- He was tapped for police commissioner.他被任命为警务处长。