Giant insurance broker Marsh says its main brokerage unit will not accept contingent commissions on business for U.S. or Canadian clients but its Marsh & McLennan Agency and its affinity and personal lines business units will.

Marsh & McLennan Agency LLC and Marsh Consumer’s affinity sponsored program and personal lines businesses will accept contingent commissions.  For these segments, the firm said it will provide plain language disclosure that meets or exceeds the New York Insurance Department’s disclosure Regulation No. 194, as well as all other applicable legal and regulatory requirements. Marsh was among the brokers who signed settlement agreements in 2005 saying they would not accept contingent commissions. The agreements were to settle probes by then-New York Attorney General Eliot Spitzer of what he contended was alleged bid-rigging.

Last month, it was announced that Marsh –- as well as Aon Corp. and Willis Group Holdings plc –- had reached an agreement with New York, Illinois and Connecticut officials that would permit them to resume taking the commissions, providing they would abide by New York’s new disclosure regulations. Willis, which abolished contingent commissions in 2004, said it would not resume taking them. Aon has said it has no current plans to accept them.

Marsh Says No to Contingents on Core Business (National Underwriter 3/25/10)

Marsh Joins Aon, Willis in Rejecting Contingents (Insurance Journal 3/25/10)

March 31, 2010