The District's antitrust investigation focused on whether Marsh improperly influenced bidding by insurance companies to serve Marsh clients, thereby depriving the clients of the benefits of unfettered competition, Mr. Spagnoletti said.

"Although the agreement does not resolve any private claims which District-based companies may have against Marsh," Mr. Spagnoletti said, "the settlement gives my office the tools it needs to determine whether Marsh clients here in D.C. are receiving the pro-competitive benefits of the business reforms negotiated by Attorney General Spitzer."

Two weeks ago two more Marsh employees pleaded guilty to felony charges brought by Mr. Spitzer, bringing to seven the number of Marsh brokers admitting in court to improper activity.

According to complaints against the brokers, they arranged to have cooperating insurers submit phony quotes that were priced excessively. Investigators said this was done to ensure that incumbent carriers Marsh was representing would retain a client's business.

Barbara Perlmutter, a spokeswoman for Marsh in New York, said "the announcement of the settlement with the District of Columbia is the culmination of a seven-month investigation by the D.C. attorney general in which Marsh has provided full cooperation."

She added, "We are pleased to put this matter behind us as Marsh moves forward with its new management team, business reforms and new compensation system for its services."