Bobby N. Harmon



2920 Ala Ilima Street, #1103, Honolulu, Hawaii 96818 Tel No. (808) 839-0674


December 4, 2000


Mr. Wayne Metcalf

Insurance Commissioner              

State of Hawaii

P.O. Box 3614

Honolulu, Hawaii 96811


RE: Requests for Inquiry - Federal Insurance Co. and P&C Insurance Co., Inc.


Dear Mr. Metcalf:


Over the past four years, I have written to your office on numerous occasions regarding serious misconduct involving Federal Insurance Company, and P&C Insurance Company, it’s captive manager, Marsh & McLennan, and its auditors, PricewaterhouseCoopers.


In my letter dated May 26, 2000, I informed you that the litigation in my case had been settled, so that your office would be free to pursue your own independent investigations into these matters. To date, I have not received a response— even an acknowledgment of the receipt of my letter-- from your office.

 

As I stated in my letter, from all information and belief, P&C Insurance Company, Marsh & McLennan, and PricewaterhouseCoopers have violated, and continue to violate, a multitude of the state’s insurance laws and should be held accountable. Recent events involving the settlement negotiations between Kamehameha Schools and Federal Insurance Company lead me to believe that these companies continue to ignore the law, with little or no concern that they will ever be called to task by any state regulatory agency. It is my belief that this laxity in pursuing any sanctions against these companies has resulted in the possible loss of tens of millions of dollars to Kamehameha Schools because of the simple fact that the entities negotiating the settlement were many of the same entities that perpetrated and participated in the alleged fraudulent schemes in the first place.


Therefore, I am again requesting that your office promptly and diligently pursue an investigation into the activities of these companies for the protection of the beneficiaries of Kamehameha Schools, the insurance company stockholders and policyholders, and the general public.


In order to keep you informed of my efforts involving other regulatory agencies, I am enclosing copies of my two letters dated December 2, 2000, addressed to Janet S. Hughes of the Internal Revenue Service.


I sincerely hope that your office will now take prompt and reasonable action to enforce Hawaii’s insurance statutes.


Sincerely,


 

Bobby N. Harmon, CPCU, ARM


encls.

 

cc:       Robert K.U. Kihune, Trustee

           Ronald D. Libkuman, Trustee

           Constance H. Lau, Trustee

           David P. Coon, Trustee

           Francis A. Keala, Trustee

           Dr. Hamilton McCubbin, CEO

           Janet S. Hughes, Mgr., IRS

           Federal Bureau of Investigation

           Tai K. Lee, U.S. Dept of the Treasury

           Dorothy Sellers, Esq., Office of the Attorney General

           Robert P. Richards, Esq., Kamehameha Schools Master

           Dr. Randy Roth, University of Hawaii


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