Michael McRaith, Illinois insurance director and task force chairman, said the decision to join the settlement is subject to the analysis of each state regulator.

In New York a spokesman for Attorney General Eliot Spitzer, whose office first surfaced charges of bid-rigging and steering between commercial insurance brokers and carriers, said regarding Zurich "the investigation is continuing."

ZAIC's parent firm Zurich Financial Services, in a statement released from corporate headquarters in Switzerland, said the agreement builds on the Memorandum of Understanding the carrier reached last October with plaintiffs in a nationwide class action suit that awarded $100 million for damages in U.S. District Court in New Jersey. The multistate agreement adds $51 million to that figure along with $20 million for state fees and costs.

Zurich Chief Executive Officer James Schiro said that agreement "brings a greater sense of clarity and transparency to the quoting process for our customers in the U.S."

Since the bid-rigging activity first came to light in October of 2004, both AIG and the major brokerages have settled similar charges with New York and regulators in other jurisdictions.

ZAIC, it was charged, conspired with certain insurance brokers in a "pay-to-play" scheme which resulted in higher insurance premiums being paid by commercial customers and governmental entities.

As part of the scheme, Zurich submitted fake bids to create the illusion of a competitive bidding process, even though the broker had predetermined the winner, Mr. Crist said.

The carrier was rewarded by having other lucrative business steered to it and in turn paid contingent commissions to the brokers, who did not disclose them to customers, Mr. Crist said.

Under the agreement, Zurich will repay policyholders across the nation approximately $151.7 million and will pay $20 million to the investigating states. Affected Florida policyholders will receive approximately $8 million under the settlement. The direct victims of the bid-rigging scheme were companies, nonprofit organizations and governmental entities that purchased commercial lines of insurance from Zurich.

Texas Attorney General Greg Abbott announced that Texas commercial policyholders would get about $11 million from the settlement.

In addition to making restitution, ZAIC has agreed to disclose contingent commission payments in the future and reform the company's business practices. The amount to be reimbursed to Florida for its investigative costs is yet to be determined, the attorney general said.

The Florida Attorney General's Office continues to investigate other brokers and insurers who are believed to have engaged in these schemes.

On March 14, the Florida attorney general filed a racketeering and antitrust lawsuit against broker Marsh & McLennan Companies Inc. over bid-rigging practices.

Among the carriers still under investigation in Florida are ACE, American International Group, Chubb, Munich American Re and Hartford.

Mr. Crist's spokesperson JoAnn Carrin noted that Zurich will now assist in the racketeering lawsuit against Marsh. "We think that as we get more settlements that will help in the overall process," she said.

In addition to the major insurance brokers, who have announced similar settlements with their states, American International Group early last month agreed to a settlement with New York that covered insurance brokerage practices.

Ms. Carrin said that while some Florida claimants will benefit from the New York settlement, she did not feel the funds available would provide full compensation.