Making the announcement were Florida Chief Financial Officer Tom Gallagher, Florida Attorney General and Governor-elect Charlie Crist, and Insurance Commissioner Kevin McCarty.

They said the brokerage, in addition to making reimbursement, agreed to adhere to stricter disclosure requirements in its broker transactions.

The agreement also bars the firm from engaging in practices that give insurers an illegal advantage.

"Brown & Brown has fully cooperated with our agencies to reimburse cities and counties in Florida for excess fees and commissions it collected, and has agreed to fully disclose all fees and commissions in the future," Mr. Gallagher said.

The Florida CFO declared in a statement that the widespread investigation of Florida's insurance brokers and companies "is positively changing the way the insurance industry does business."

Attorney General Crist said that "insurance brokers and companies must realize that the people come first. This settlement is another important step in eliminating hidden charges in this industry."

The enhanced disclosure requirements in the agreement will "ensure greater transparency in broker transactions for Floridians," Commissioner McCarty said.

Today's $4.8 million refund arrangement follows a two-year joint investigation into insurance brokerage activities conducted by the Department of Financial Services, which Mr. Gallagher oversees, the Office of the Attorney General, and the Office of Insurance Regulation.

B&B is also paying $1 million to the investigative agencies for reimbursement of investigative costs.

The settlement agreement states that B&B agrees not to accept compensation, including contingent commissions, as payment for giving an insurer an unlawful advantage in bidding.

It also calls on the firm not to accept any insurer's request to submit any "false, fictitious, inflated or artificial bid or quote that is not intended to be a legitimate offer..."

Also banned under the agreement is the tying of any placement to the insurer's use of any B&B services, including reinsurance.

Under the settlement, the brokerage is required to let policyholders know the details of its compensation "in plain, unambiguous written language."

The settlement states that the parties agree the list of banned practices in the agreement is not "a determination that Brown has ever engaged in any of these practices."

This posting updated Dec. 10, 12:27 p.m.