Aon Corporation said it has obtained agreement from five agencies in three states to amend its settlement agreements so that it can accept contingent compensation from an insurer for which Aon is acting as a general agent or underwriter.
The original agreements prohibited Aon business units from accepting any contingent compensation. They were drawn up as part of the settlement over charges of bid rigging and account steering against Aon and other large brokers.
Under the amendment, the attorneys general of New York, Illinois and Connecticut as well as the insurance departments of New York and Illinois have agreed that an Aon managing general agent or managing general underwriter that acts on behalf of a single insurer per program and accepts business from brokers may now accept contingent compensation from the insurer.
Insurance brokers Marsh and Willis previously worked out similar amendments to their settlements allowing them to accept contingent pay when acting in an MGA capacity with New York officials.
“This amendment correctly recognizes that when we act as an agent for the insurer, it is appropriate for us to accept contingent compensation from the insurer,” said Greg Case, Aon’s president and CEO. “We believe that the amendment will give Aon more flexibility to structure its relationships with insurers to the mutual benefit of Aon, insurers, and the ultimate insureds. Aon remains committed to the highest levels of client focus and transparency, and this amendment is entirely consistent with those values.”
Source: Aon Corporation www.aon.com
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