Koken: Quick Marsh Pact Aids Insurers' Image

That "swift solution," said Ms. Koken, who is Pennsylvania's insurance commissioner, "is going to go far towards restoring the confidence level of consumers."

She noted that "whenever there are allegations that clients are being deceived, it impacts on the level of trust that consumers would have for the industry."

Ms. Koken added that it is "important to note that most of the consumers are not being deceived and are not the subject of illegal acts–but yes, there is a need to increase the comfort level of consumers that there are not illegal acts that are going on in the marketplace."

She said insurance commissioners across the country condemn illegal acts and work hard to prevent violations.

However, some criminal activity, such as bid rigging, she said, is outside the jurisdiction of commissioners who enforce insurance law.

The NAIC president said she could not speculate on the effects of ongoing investigations of the industry by state insurance regulators and attorneys general, but she noted that other brokers and insurers are being looked at.

In the case brought by Mr. Spitzer, MMC's Marsh brokerage unit was accused of arranging to steer clients to insurers who paid fees that were essentially kickbacks. Insurers were said to have cooperated in the price-fixing scheme and create the appearance of legitimate competition by providing fake bids.