Hilb, Rogal & Hobbs said it has agreed to set up a $30 million client reimbursement fund to settle charges by Connecticut authorities that the brokerage steered insurance contracts to carriers and failed to properly disclose fee agreements.
The arrangement with the state Attorney General's Office and Insurance Department allows the Richmond, Va.-based insurance brokerage firm to keep contingent commissions on agency business but not on broker business.
HRH's settlement is different from those reached in other states by the four major insurance brokers who agreed to stop accepting such incentive fees, which regulators and investigators have said were sometimes paid by insurers as kickbacks for business.
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