Zurich'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 Financial Chief Executive Officer James Schiro said the agreement “brings a greater sense of clarity and transparency to the quoting process for our customers in the United States.”

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

Zurich American, it was charged, conspired with certain insurance brokers in a “pay-to-play” scheme that resulted in higher insurance premiums being paid by commercial customers and government entities. As part of the scheme, Zurich allegedly 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 added.

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

The direct victims of the bid-rigging scheme were companies, nonprofit organizations and government entities that bought commercial insurance from Zurich.

In addition to making restitution, Zurich American 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 such schemes. On March 14, the Florida attorney general filed a racketeering and antitrust suit against Marsh & McLennan Companies for alleged bid-rigging practices.

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

A representative for Mr. Crist, JoAnn Carrin, said 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, AIG early last month agreed to a settlement with New York that covered 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.