Aon Corp. agreed Friday to pay $190 million to settle charges by five agencies in three states that it had accepted payments in exchange for steering clients toward certain insurance providers.
The Chicago insurance broker settled claims by the attorneys general of New York, Illinois, and Connecticut as well as by the insurance departments in New York and Illinois. An Aon spokesman said the settlements involve no fines or penalties. The $190 million is to be paid to customers.
Aon has established a reserve of $180 million - the "present value" of the $190 million agreed on. The settlement is to be funded in three installments. Separately, Aon has established a $40 million reserve in connection with related litigation.
The settlement included a statement by Aon chief executive officer Patrick Ryan that apologized for the company's actions and acknowledged that some employees acted improperly.
