And then there were three. Aon Corporation is the latest to get approval to amend its settlement agreements so that it can accept contingent compensation from an insurer for which Aon is acting as a general agent or underwriter.

The original agreements prohibited Aon business units from accepting any contingent compensation from insurers, which authorities alleged created a conflict of interest with insurance buyers. They were drawn up as part of the settlement over charges of bid rigging and account steering against Aon and other large brokers. Under the amendment, the attorneys general of New York, Illinois and Connecticut as well as the insurance departments of New York and Illinois have agreed that an Aon managing general agent or managing general underwriter that acts on behalf of a single insurer per program and accepts business from brokers may now accept contingent compensation from the insurer.

Previously, Marsh and Willis Group Holdings Ltd. announced similar amended agreements.

Aon Freed to Accept MGA Contingent Pay (Insurance Journal 9/7/06)

September 14, 2006