Massachusetts’ Attorney General has filed a lawsuit against Great American Insurance Group and their subsidary, Professional Risk Brokers Inc., declaring the company was involved in “bid rigging” when offering quotes to a technology firm.

State Attorney General Martha Coakley is accusing Great American of conspiring with another broker to submit a higher quote for services so the first broker would get the job. “Contingent commissions,” commonly referred to as kickbacks, were then paid in the form of sub-policies based on the amount of business acquired.

The allegations contend Great American offered the higher bid at the request of Marsh & McLennan Cos., who then funneled another insurance policy to Great American worth about $60,000.

Although Marsh & McLennan is not named as a defendant in this suit, the company has been mixed up with bid-rigging scams as recently as 2005. Allegations of bid rigging, price fixing, and using hidden incentive fees to steer contracts, were settled out of court to the tune of $850 million.

Coakley is requesting civil penalties, restitution, and a court order preventing Great American from deceptive and unfair business practices. A spokesperson for Great American’s parent company, American Financial Group Inc, refused to comment on the scandal.

In the end, it’s the policyholders who ultimately loose out. Having to shell out higher premiums to pay for inappropriate conduct would make me think twice about keeping my coverage with these guys.