Chubb Corp. and the attorneys general of New York, Connecticut and Illinois announced last month that the company would pay $17 million to resolve an investigation of alleged customer steering, improper finite reinsurance transactions and other illegal industry practices.
Under the settlement, Chubb will pay $15 million to its excess-casualty policyholders who bought policies through Marsh & McLennan Companies, as well as $2 million in costs, according to a release issued by the office of then-New York Attorney General Eliot Spitzer, who begins his first term as governor this week.
The Warren, N.J.-based insurer also agreed to adopt business reforms, including ending payment of contingent commissions for its insurance products as of Jan. 1, 2007.
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