Why Spitzer's lawsuit against the insurance industry is not overreaching

[Quetzal]

The New York Attorney General's Controversial Suit Against the Insurance Industry:
Why Claims Eliot Spitzer Is Overreaching Are Wrong

After taking on the mutual fund industry, New York Attorney General Eliot Spitzer is now setting his sights on the insurance industry. Two weeks ago, at a news conference, he announced he had found wide-spread wrongdoing.

Since then, the stocks of various insurance brokers and companies have dropped. The major CEO of one insurance broker has resigned. The Wall Street Journal has denounced Spitzer on its editorial pages, alleging that he's overreaching, and turning his office into a regulatory agency.

In this column, I will examine Spitzer's civil suit. I will also consider the claim that Spitzer - rather than doing his job, and enforcing the law - is actually, in effect, trying to write new laws without consulting the legislature or the voters. I will argue that this claim is in error: In fact, Spitzer is doing his job. Moreover, if he is overstepping the limits of his office, it is in part because the insurance commissioners of New York and other states are not doing their jobs.

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The New York Attorney General's Controversial Suit Against the Insurance Industry:
Why Claims Eliot Spitzer Is Overreaching Are Wrong>

[MSgt213]

1. In fact Spitzer is the only one doing his job. There is no federal

oversight so it's up to the states to take action. Most state attorney generals are too cozy with these people.