Aon Corporation, the nation’s second largest insurance brokerage, has entered into an agreement to resolve allegations of fraud and anti-competitive practices. The agreement was announced March 4 New York Attorney General Eliot Spitzer and Acting New York State Insurance Superintendent Howard Mills, together with Connecticut Attorney General Richard Blumenthal, Illinois Attorney General Lisa Madigan and Illinois Acting Director of Insurance Deirdre Manna.

The agreement with Aon was modeled after an earlier agreement reached January 31 with the nation's largest insurance broker, Marsh & McLennan Companies, for $850 million.

Under the agreement, the Chicago-based Aon Corporation is providing $190 million over a 30- month period for restitution to policyholders and is adopting a new business model designed to avoid conflicts of interest. In addition, Aon's Chairman and CEO, Patrick G. Ryan, will issue a public statement apologizing for Aon's improper conduct according to the statement issued by Spitzer's office.

Aon Settles Probe (Spitzer press release 3/4/05) 

Aon Settles Corruption Probe With 3 States (Insurance Journal 3/4/05)

March 9, 2005