NEW YORK--Willis Group Holdings Ltd. on Friday announced it has reached an agreement with New York Attorney General Eliot Spitzer and New York Superintendent of Insurance Howard Mills allowing the broker to accept extra profit-based commissions from insurers when it acts as a managing general agent.
Coming on the heels of a similar agreement with Marsh Inc., Willis' agreement amends its April 2005 settlement with the New York authorities in which it agreed to cease collecting contingent commissions from insurers, which authorities alleged created a conflict of interest with insurance buyers that compensate Willis for its services.
"When working as an MGA, we represent the interests of an insurance company, so this change to the (settlement) is consistent with our position of being paid by our client," Joe Plumeri, Willis' chairman and chief executive officer, said in a statement.
New York-based Marsh reached its agreement with the New York authorities last month (BI, Aug. 28). A spokesman for Chicago-based Aon Corp. said it expects to reach a similar agreement amending its March 2005 settlement with authorities in New York and other states.
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