Aon has obtained agreement from five agencies in three US states to amend its Settlement Agreement with those agencies to exempt certain Aon business units from the agreement's restrictions relating to compensation, contingent commissions, and mandated disclosures.
Under the amendment, the attorneys general of New York, Illinois and Connecticut as well as the insurance departments of New York and Illinois have agreed that an Aon managing general agent or managing general underwriter that acts on behalf of a single insurer per program and accepts business from brokers may now accept contingent compensation from the insurer.
Greg Case, Aon's president and CEO, said, “This amendment correctly recognizes that when we act as an agent for the insurer, it is appropriate for us to accept contingent compensation from the insurer. We believe that the amendment will give Aon more flexibility to structure its relationships with insurers to the mutual benefit of Aon, insurers, and the ultimate insureds. Aon remains committed to the highest levels of client focus and transparency, and this amendment is entirely consistent with those values.”
