Marsh & McLennan Companies Inc. (MMC) said Tuesday that it has received an excellent response from policyholders eligible to participate in the compensation fund MMC established as part of its settlement with the New York Attorney General and Superintendent of Insurance in January 2005.
Based on preliminary information, nearly 70,000 eligible policyholders across the United States have elected to participate in the Fund. These policyholders will receive approximately $750 million of the $850 million settlement. Over 90 percent of the largest policyholders have opted in to the settlement. Policyholders electing to participate in the Fund had until Sept. 20, 2005 to sign a release.
Michael Cherkasky, president and chief executive officer of MMC, said, “We are gratified that so many clients have elected to participate in the Fund. This broad endorsement by our policyholder clients follows on the heels of the settlement agreement reached with numerous state insurance commissioners through the National Association of Insurance Commissioners. Completion of this stage of the process represents another important step forward for Marsh.”
Payments will be made in four installments on Nov. 1, 2005 and June 30, 2006, 2007, and 2008.
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