Regulators in Florida, Hawaii, Maryland, Massachusetts, Michigan, Oregon, Texas, West Virginia, Pennsylvania and the District of Columbia accused AIG of paying agents and brokers undisclosed contingent commissions and collusion with Marsh Inc. to manipulate bids for excess casualty business.
Part of the settlement includes continued disclosure by AIG regarding producer compensation, said the insurer.
The settlement is the latest in a string of agreements reached between state regulators and various insurers and brokers after former New York Attorney General Eliot Spitzer’s fraud and bid-rigging suit against Marsh & McLennan Cos. Inc. in 2004.