The sale would include Near North's retail operation, Near North Insurance Brokerage; reinsurance, THB Intermediaries; structured settlement, Settlement Planning Associates; and its excess-surplus lines, DMI Brokerage operations in Chicago, Dallas, Las Vegas, London, Los Angeles, New York, Tampa and Washington, D.C.

The parties did not release terms of the agreement.

In 2002, the privately owned Chicago-based firm, which is currently facing a federal indictment, reported revenues of more than $120 million.

After the sale, which is expected to conclude after the completion of all legal filings, Near North National Group will still exist as a holding company.

The corporation would still retain a number of other services not included in the deal such as International Film Guarantors Inc., which provides motion picture completion bonds; Home Warranty of America, which provides home warranty protection for appliances and major mechanical systems; Near North National Title Corp., which provides title insurance and escrow services; and Alternative Marketing Technology Group Inc., an application service provider, and other holdings.

Upon completion of the sale, Dick Riley would become chief executive officer. Robert Goss would be named chief financial officer. According to Liz Simer, a spokeswoman for Near North, both Mr. Riley and Mr. Goss are currently consultants to the firm.

The deal comes after federal prosecutors announced the indictment of Near North on charges of mail and insurance fraud last week. The indictment comes six months after the arrest of founder and former CEO Michael Segal on the same charges (see NU, June 23, page 5).

The arrest came after it was revealed there were accounting problems with the firm's premium trust fund account. Mr. Segal is accused of using more than $24 million for his own and the company's use over a decade.