May 19, 2005 by Canadian Underwriter
Arthur J. Gallagher & Co., the Illinois Attorney General and Illinois’s director of insurance have reached an agreement regarding the industry-wide contingent commission investigations.
Upon pleading no liability or wrongdoing, Gallagher is not required to issue an apology. Based on terms of the agreement Gallagher must develop a $27 million fund for select retail clients, although these moneys are not indicative of a fine or penalty. In addition, the Company must eradicate all contingent commissions, disclose compensation for their services, offer enhanced business ethics and compliance training for employees and create a compliance committee.
No lawsuit was involved in the investigations, which could claim no unlawful or deceitful conduct or prove that any client had been disadvantaged.