Marsh & McLennan pay Colorado Policyholders $12.7 Million

Over 100 Colorado policyholders have received offers totaling $12.7 million from Marsh & McLennan Companies Inc. as part of Marsh’s agreement with New York Attorney General Eliot Spitzer to create a $850 million restitution fund, according to a statement recently released by Colorado Insurance Commissioner David Rivera.
“Even sophisticated consumers of insurance products can become victims of unethical and unlawful conduct,” Rivera says.
The fund will compensate for damages incurred as a result of the Company’s improper steering of business to insurers they had formed contingent commission agreements with. The companies affected have until Sept. 20 to accept Marsh’s settlement offer, which reflects a prorated share of the settlement figure. The share each company will receive is based on the premiums they paid and the estimated revenue Marsh amassed.
Individually, the eligible Colorado companies, some of whom represent the largest employers in the state, will collect from $24,000 to $2.4 million from the settlement offer.
Approximately 15,000 policyholders in Washington are also eligible to collect from the $850 million fund. The largest settlement offer in Washington is $952,000, proposed to Washington Mutual Inc.