Complaint to the Hawaii Insurance Commissioner re Marsh & McLennan

Bobby N. Harmon, CPCU, ARM

Las Vegas, NV 89118-2070

January 19, 2005

VIA fax only @ 808-586-2806

Mr. J.P. Schmidt

Insurance Commissioner, State of Hawaii

Honolulu, Hawaii 96813

RE: Complaint Against Marsh & McLennan - Unfair Competition

Dear Commissioner Schmidt:

Due to the recent revelations regarding bribery, bid-rigging, kick-backs, and other fraudulent actions by a number of prominent insurance companies and brokers, I have decided to file this complaint against Marsh & McLennan as it relates to an insurance proposal that was requested of American Mutual Underwriters, Ltd. (AMU) by National Housing Corporation in 1998 for the Ko `Olina resort development in West Oahu.

At that time, American Mutual Underwriters was a partner in an insurance organization called Assurex International (now Assurex Global). Our Ohio Assurex partner was the broker for National Housing Corporation, and that partner asked our office to obtain insurance proposals for their client who was planning a large real estate development in Ko `Olina. Sometime in 1998, I met with Kevin Showe (pronounced like the showe in shower) and we visited the Ko Olina site to get some idea of the size and nature of the development. During that visit, Mr. Showe commented that it wasn’t 100% certain that they were going to be able to go ahead with the project, but that it looked good. He said that one matter that needed to be resolved was a rezoning of the property. But, he said, this was a matter of downzoning, or downsizing, so that he thought it wouldn’t be a major problem.

I then began putting together the bid specifications for the proposal, working primarily with Layne Peckham, of Stewart Smith West, Inc., Prescott, Arizona, to arrange for the quotations and placement. Shortly afterwards, we received a phone call from National Housing advising us not to proceed with the quote, that they were going to deal exclusively with Marsh & McLennan. The word we received from them was that it did not have anything to do with our professional services, but that it was strictly “political”.

It was not until a few weeks after this that I learned that two of the major partners in this venture were Jeff Stone and former Bishop Estate Trustee Richard Wong, and that these two individuals were being indicted by the Attorney General’s office for alleged kick-backs involving real estate transactions with Bishop Estate.

I also learned that the servicing agent for the account was Rocco Sansone, who was the same agent involved with me at Kamehameha Schools/Bishop Estate, and who I accused of similar fraudulent bid-rigging and kick-back schemes in my RICO lawsuit.

Needless to say, the loss of this account potentially cost our agency and our staff millions of dollars in commission income. I sincerely believe that this was a clear case of unfair competition, and request that your office promptly and diligently investigate the operations of Marsh & McLennan in Hawaii, and take whatever legal action that may be warranted in order to protect not only the smaller insurance agents that have been financially harmed, but also the consuming public which must pay higher prices for goods and services because of inflated insurance costs resulting from these illegal schemes.

I refer you to the following web addresses for additional related information:

www.kycbs.net/Ko-Olina.htm

www.kycbs.net/Apollo.htm

www.kycbs.net/Bishop.htm

www.kycbs.net/Claims-By-Harmon.htm

www.kycbs.net/BH-CHRON-97-99.htm

www.kycbs.net/Developers.htm

www.kycbs.net/InsuranceCommissioners.htm

www.kycbs.net/ACE.htm

www.kycbs.net/Aon.htm

www.kycbs.net/AIG.htm

www.kycbs.net/AlliedWorldAssurance.htm