NAIC adopts Marsh settlement (September 22, 2005)

Working collaboratively through the National Association of Insurance Commissioners (NAIC), over 30 state insurance regulators recently adopted a multi-state regulatory settlement with Marsh & McLennan Cos. Inc.
The settlement agreement will ensure that Marsh implements the compensation and disclosure reforms including the Company’s requirement to pay its clients $850 million in restitution it agreed to pay as a resolve against Spitzer’s allegations of Marsh’s fraud and anti-competitive practices.
The participating regulators will receive ongoing compliance reports from Marsh, have the authority to enforce reforms and retain the ability to continue ongoing investigations with Marsh’s cooperation.
“The regulatory controls that are embodied in this global agreement are prudent and comprehensive,” Diane Koken, NAIC president and Pennsylvania Insurance Commissioner, says. “We recognize that some customers of Marsh may have reasons not to opt into the monetary settlement However, expediently returning as much money to as many consumers as possible was an important consideration in endorsing this global settlement."
Marsh clients had until Tuesday to join the settlement pool and release Marsh from further claims. The NAIC subgroup intentionally withheld its announcement until the deadline had passed to avoid the appearance of weighing in on whether eligible clients should opt-in.