The Office of Financial and Insurance Services (OFIS) announced that Michigan consumers will receive compensation as part of a negotiated settlement with insurance brokerage Aon Corporation.
Nearly 8,000 Michigan citizens were affected by the settlement and are due $5,143,092. This represents 2.04 percent of Aon’s policyholders and 2.71 percent of the $190,000,000 total settlement amount. Aon has established the fund to pay clients and former clients from whose placements Aon derived contingent commissions during the period of 2001 to 2004.
Affected Michigan residents should have received notification from Aon, which had until June 30, 2005 to send a statement to each eligible policyholder with the amount the policyholder would receive under the settlement.
Policyholders have until October 30, 2005 to request a distribution and tender a release form. On November 30, 2005, September 30, 2006, and September 30, 2007, AON will make proportionate payments to the policyholders.
The settlement is a result of an action taken by the New York Attorney General and the New York Superintendent of Insurance (and other states which commenced original actions). They alleged that that Aon unlawfully deceived its clients by steering clients’ insurance business to favored insurers.
The final agreement can be viewed online at http://www.ins.state.ny.us/acrobat/oag0503041.pdf.