The National Association of Insurance Commissioners says it has reached a multistate settlement agreement with Marsh & McLennan Companies Inc.[@@]
The NAIC settlement endorses a settlement negotiated by New York Attorney General Eliot Spitzer and New York Insurance Superintendent Howard Mills in January.
Executives at Marsh & McLennan’s brokerage firm, Marsh, were accused of taking kickbacks and of steering insurance contracts to carriers in return for lucrative, volume-based contingent commissions.
The January settlement will require Marsh & McLennan, New York, to put $850 million in a client restitution fund.
Marsh & McLennan also agreed to a ban on contingent commissions and full disclosure of compensation arrangements.