Aon Corp. reaches $ 4 million settlement with Florida
TALLAHASSEE, Fla. (Legal Newsline)-One of the world's largest insurance brokerages has reached a $4 million settlement with the Florida attorney general over allegations it accepted payments from insurers in return for business.
Aon Corp. has agreed to pay $2.6 million to reimburse affected policyholders and $1.4 in fees and costs to Florida within 10 days, Florida Attorney General Bill McCollum said in a statement.
"Insurance customers, including government entities, need to know what they are getting for the premiums they are paying," McCollum said. "Consumers deserve transparency and taxpayers deserve to be treated fairly."
In accepting the settlement, New York-based Aon did not admit to any wrongdoing. The company said it settled to avoid expenses from a lengthy investigation and possible litigation.
Florida officials claimed that their investigation showed Aon had improperly collected compensation when it placed some insurance policies with insurance companies.
The firm must also now disclose to its clients all fees, compensation and commissions associated with each insurance transaction, under the terms of the settlement.
"Full disclosure in all insurance transactions is a must, and Florida consumers deserve nothing less," state Insurance Commissioner Kevin McCarty said in a statement.
Aon brokered many major insurance contracts in Florida from 1998 through 2004. Clients included public entities such as city governments and school boards.
From Legal Newsline: Reach reporter Chris Rizo by e-mail at firstname.lastname@example.org.