On March 13, California Insurance Commissioner John Garamendi said that Marsh & McLennan Cos. has settled an investigation into practices involving commissions.  Garamendi said that the company, which will not be fined, agreed to disclose commission agreements and to cease any practices that could improperly influence the bidding process. 

In January 2005 Marsh agreed to pay $850 million to settle a lawsuit by New York Attorney General Eliot Spitzer accusing the company of manipulating the bidding process to favor insurers that paid Marsh contingent commissions.  Garamendi said that California policyholders will receive approximately $100 million from the New York settlement.  Barbara Perlmutter, a spokeswoman for Marsh, said that the California agreement was similar to the one reached with Spitzer, which has been signed by commissioners from 33 states.  Norman Williams, a spokesman for Garamendi, said that Marsh will pay $15,000 to cover the cost of the California investigation.

On March 14, Florida authorities filed a lawsuit accusing Marsh & McLennan Cos. Inc., the nation’s largest insurance brokerage, of lying to clients and receiving improper commission fees. The lawsuit by Attorney General Charlie Crist charges Marsh & McLennan and its three subsidiaries with steering clients to insurance providers who paid the broker high commission fees, and not insurers who offered the best prices for their plans. The suit seeks $26 million.

March 21, 2006