Chubb Corp. announced a settlement Thursday with the attorneys general of New York, Connecticut, and Illinois to resolve their investigations of bid-rigging by the Warren, N.J., insurer.
According to a filing Tuesday in U.S. District Court in Connecticut, Chubb was one of five insurers that agreed to accept referrals from Acordia Inc., Wells Fargo & Co.'s insurance brokerage arm, in return for "millions in secret payments."
Chubb said it conducted an independent investigation that found it "did not participate in a pattern or practice of illegal bid-rigging in the excess casualty insurance market," but the company said it "unknowingly benefited from the bid-rigging activities of others."
Chubb agreed to contribute $15 million to a settlement fund and $2 million to help defray the costs of the investigation by the attorneys general. It said it was not assessed any fine or other penalty.
