NU Online News Service, May 19, 6:00 p.m. EDT–Insurance broker Arthur J. Gallagher has reached a $27 million settlement with Illinois regulators investigating the company for suspected steering of customers in return for undisclosed fee arrangements with insurers.
Coinciding with the announcement of the agreement regulators released e-mails of Gallagher managers pushing staff to channel business to carriers they had incentive fee deals with.
J. Patrick Gallagher Jr., president and chief executive officer of the Itasca, Ill.-based insurance brokerage firm, in an analyst's conference call, said he hoped the agreement, which is national in scope, would satisfy all other outstanding investigations by 20 other agencies including attorneys general and insurance regulators.
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