NU Online News Service, March 24, 2003, 10:19 a.m. EST – EHealthInsurance Services Inc., Sunnyvale, Calif., has agreed to pay InsWeb Corp., Sacramento, Calif., $800,000 to settle a dispute over a failed marketing agreement, InsWeb says.

EHealthInsurance and InsWeb have also agreed to give up all legal claims against each other, InsWeb says.

InsWeb, a Web-based, multiline insurance broker, once depended on eHealthInsurance to serve visitors who wanted health insurance. But eHealthInsurance broke off the relationship in February 2001, and the companies soon took each other to court.

The $800,000 settlement payment will cover the cost of services performed by InsWeb before the termination of the marketing agreement, InsWeb says.