American International Group Inc. (AIG) agreed to pay $12.5 million to 10 states to settle bid rigging allegations.  AIG was accused of paying agents and brokers undisclosed contingent commissions and in colluding in a scheme with Marsh Inc.  This settlement follows the settlement reached last month by the Travelers Cos. Inc.

The states included in the settlement are:  Florida, Hawaii, Maryland, Massachusetts, Michigan, Oregon, Texas, West Virginia, Pennsylvania and the District of Columbia.  AIG denies the allegations that some of its subsidiaries were involved in a "pay-to-play" tactic.

More information on this settlement can be found in the February edition of Mealey's Insurance Broker Liability.