June 03, 2008 at 01:08 PM
State officials have agreed to let Aon Corp. acquire other insurance brokers without immediately ending the brokers’ contingent commission arrangements.
Aon, Chicago, agreed to end its own contingent commission arrangements in 2005, to avoid concerns about how compensation tied to entire books of business, rather than specific accounts, might lead to disclosure problems.
The agreeement interfered with efforts by Aon to acquire brokers that continue to accept contingent commissions, Aon says.
The new settlement agreement revision, negotiated with the attorneys general in Connecticut, Illinois and New York and the insurance departments in Illinois and New York, will permit Aon to phase acquired brokers’ compensation programs out over 3 years after the acquisitions are completed, Aon says.
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