Another chapter has closed on the contingent-commission kickback saga with an agreement reached between a group of insurers and insurance brokers—and their clients who alleged the industry tried to manipulate the business.
A settlement was reached in a U.S. District Court of New Jersey class-action suit dating back to 2004 that involved accusations of bid-rigging, price-fixing and steering of commercial insurance contracts in exchange for lucrative contingent commissions.
In a settlement agreement reached through mediation, American International Group Inc., Liberty Mutual, Travelers and XL will pay plaintiffs a total of $27 million. The four insurers will be responsible for paying $6.75 million plus other fees.
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