Two More Insurance Firms Hit With Spitzer Subpoenas

October 26, 2005 ( - Redwood City, Calif.-based ABD Insurance & Financial Services and Cleveland-based CBIZ Benefits & Insurance Services Inc. said they received subpoenas from New York Attorney General Eliot Spitzer last week requesting information regarding their compensation practices.

Business Insurance reports that ABD parent Greater Bay Bancorp of East Palo Alto, California said in a Securities and Exchange Commission filing that it understands its subpoena is part of Spitzer’s broad review of the industry and that others have recently received subpoenas as well.

CBIZ Inc. said its insurance brokerage unit has not been named or referenced in any lawsuits stemming from any investigation and it believes its compensation arrangements are appropriate and in compliance with all existing insurance industry laws and regulations, according to Business Insurance.

Both companies said they will cooperate with Spitzer’s office.