Florida reached a settlement with Aon Corp., after the insurance broker received undisclosed compensation in connection with the placement of insurance coverage on behalf of Florida policyholders, state officials said.
Through the investigation, authorities uncovered allegations that Aon improperly collected undisclosed compensation when it placed various insurance coverages with insurance companies. Undisclosed compensation is any form of compensation paid to the broker but not reported to policyholders before binding the transaction for the purchase of a policy.
As part of the agreement, Aon will pay $2.6 million to reimburse affected Florida policyholders. Aon also will reimburse the three Florida agencies $1.4 million in fees and costs, which will be paid within 10 days of the May 23 agreement.
The Florida Department of Financial Services, the Office of Insurance Regulation and the Office of the Attorney General conducted the investigation and determined that Aon brokered multiple insurance contracts in Florida from 1998 through 2004.
Aon’s clients included several public entities in the state of Florida, including city governments and school boards. Insurance brokers represent their clients by advising them on their insurance needs and options and represent the clients when negotiating the price and terms of insurance coverage offered by insurance companies.
Florida Insurance Commissioner McCarty said the settlement further demonstrates the progress Florida is making toward establishing a national standard for transparency in insurance transactions.
Source: Florida Office of Insurance Regulation