The Chubb Corp. and attorneys general of New York, Connecticut and Illinois announced today that the company would pay $17 million to resolve an investigation of customer steering, improper finite reinsurance transactions, and other illegal industry practices.
A release from New York Attorney General Eliot Spitzer's office said that under the settlement, which includes Connecticut Attorney General Richard Blumenthal and Illinois Attorney General Lisa Madigan, Chubb will pay $15 million to its excess casualty policyholders who purchased their policies through Marsh & McLennan Companies, Inc.
The Warren, N.J.-based insurer also agreed to pay $2 million in costs, and to adopt business reforms, including ending payment of contingent commissions for its insurance products on Jan. 1, 2007.
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