The National Association of Insurance Commissioners (NAIC) has announced a multi-state regulatory agreement with the nation's largest broker, Marsh & McLennan (MMC) to adopt its $850m settlement with New York attorney general Eliot Spitzer and New York State Insurance Superintendent Howard Mills.
The settlement, which involves more than 30 state insurance regulators working collaboratively through the NAIC, is designed to ensure that the extensive compensation and disclosure reforms reached under Spitzer's settlement are implemented by MMC.
The participating regulators will receive ongoing compliance reports from MMC, have the authority to enforce the reforms and retain the ability to continue ongoing investigations with the company's cooperation, according to the NAIC.
Diane Koken, the NAIC president and Pennsylvania insurance commissioner, said: "The regulatory controls that are embodied in this global agreement are prudent and comprehensive.
"We recognise that some customers of Marsh may have reasons not to opt into the monetary settlement, and we can certainly understand that. However, expediently returning as much money to as many consumers as possible was an important consideration in endorsing this global settlement."
In a statement, MMC president and chief executive Michael Cherkasky said the agreement "represents an important step forward for Marsh and a reaffirmation of Marsh's commitment to business reform."
