MMC said the majority of those accepting the deal were its largest policyholders.

The New York-based parent of the Marsh brokerage giant said it received an "excellent response" from eligible policyholders to participate in the compensation fund MMC established as part of its settlement with New York Attorney General Eliot Spitzer and Superintendent of Insurance Howard Mills in January.

MMC said that based on preliminary information, nearly 70,000 eligible policyholders across the country elected to participate in the fund. These policyholders will receive approximately $750 million of the $850 million settlement.

Barbara Perlmutter, an MMC representative, said there were 140,000 clients eligible to participate in the fund. Despite half not opting-in, she noted that the company was pleased with the response because 90 percent of the largest policyholders did opt-in. Policyholders had until Sept. 20 to sign into the fund and waive their right to sue MMC.

Payments will be made in four installments–this Nov. 1 and on June 30, 2006, 2007 and 2008. Ms. Perlmutter said the remaining $100 million would be used for settlement with clients in accordance with the agreement.

"We are gratified that so many clients have elected to participate in the fund," said Michael G. Cherkasky, president and chief executive officer of MMC, in a statement.

"This broad endorsement by our policyholder clients follows on the heels of the settlement agreement reached with numerous state insurance commissioners through the National Association of Insurance Commissioners," he added. "Completion of this stage of the process represents another important step forward for Marsh."

MMC and the NAIC announced last month that state insurance regulators would accept the New York agreement to conclude actions by the commissioners.

However, the announcement does not have any bearing on other litigation or discussions MMC is having with several other attorneys general, she said.

Just recently, Connecticut Attorney General Richard Blumenthal announced he is expanding his lawsuit against MMC to include allegations of bid-rigging, price-fixing and illegally steering state business and consumers to favored insurers in return for "tens of millions of dollars in undisclosed kickbacks."

Mr. Blumenthal said the new allegations, which were previously limited to a state contract, could now involve "thousands" of the state's residents. He said the suit would seek money back for corporate, nonprofit, government entities and individuals harmed by Marsh's practices.

Among some of those Mr. Blumenthal said were affected by Marsh's alleged wrongdoing were Bic, Timex, Xerox, General Electric, the state's Department of Administrative Services, several cities and towns, Yale University, Mystic Seaport, and the Save the Children Federation.

"There were about 1,100 Connecticut policyholders who elected to participate in the settlement out of 2,800 [who were eligible]," Mr. Blumenthal told National Underwriter. "Our lawsuit seeks to help obtain compensation for the remaining 1,700, or even additional compensation for those who participated. So, this [settlement] in no way makes our litigation moot or academic."

MMC settled with New York after officials there filed suit against the company, charging Marsh had rigged bids and fixed prices with insurers that paid hidden contingency fees as kickbacks.

"We are gratified that so many clients have elected to participate in the fund…Completion of this stage of the process represents another important step forward for Marsh."

Michael G. Cherkasky,

MMC President & CEO