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