Marsh & McLennan Companies has agreed to pay Ohio $4.75million to settle an antitrust lawsuit stemming from allegationsthat the company's insurance brokerage firm engaged in abid-rigging and kickback scheme in return for lucrative contingentcommissions.

Last week, Ohio Attorney General Richard Cordray said MMCsettled a lawsuit filed in Cuyahoga County Common Pleas Court thataccused MMC's brokerage subsidiary Marsh of "conspiring withvarious insurers to eliminate competition in the commercialcasualty insurance industry."

The suit accused Marsh of conspiring to provide customers withfictitious quotes that created a false impression that competitivebidding had produced the best possible price during the years2001-2004.

A total of 26 public entities–including universities, schools,municipalities, retirement systems and public authorities–willreceive portions of the recent Ohio settlement.

"We are pleased to have resolved this matter, which relates toevents dating back to 2004 and earlier," MMC said in a statement."The settlement makes no findings against Marsh, includes no finesor penalties, and expressly does not include any admission ofliability by the company."

"This settlement regains a piece of what we lost as a result ofsecret conspiracies that ultimately cost Ohioans millions inpremium payments by schools, universities, cities, counties andothers," said Mr. Cordray in a statement.

The attorney general's office said it has recovered more than$27 million as a result of the lawsuit against Marsh and variousinsurers. Earlier this year, Mr. Cordray settled with AmericanInternational Group and Hartford Financial Services Group for morethan $9 million.

Cases are still pending against ACE American Insurance Companyand Chubb Corp. related to the Marsh allegations, the attorneygeneral said.

The accusations stem from the investigation by former New YorkAttorney General Eliot Spitzer that alleged Marsh engaged in abid-rigging and kickback scheme over the placement of insurancewith carriers paying lucrative, volume-based contingentcommissions.

MMC paid $850 million into a settlement fund in 2005 to end theNew York investigations. As part of the agreement, MMC gave uptaking contingent commissions, which was a substantial part of itsrevenues at the time, resulting in tremendous disruption to thecompany.

At the beginning of this year, Marsh, along with Aon, reached anagreement with the New York, Connecticut and Illinois attorneysgeneral that would allow them to once again accept contingents, butunder new disclosure rules being mandated by the New York InsuranceDepartment for all producers, starting on Jan. 1.

A representative for Marsh said there are no more attorneygeneral cases pending regarding this matter, but a handful ofprivate policyholder lawsuits remain.