Florida reaches million-dollar settlement with insurance carrier

Florida and nine other states have reached a multimillion-dollar settlement with a large insurance carrier involved in a pay-to-play scheme.
The Travelers Companies Inc. will pay $6-million to a multistate task force to resolve allegations of rigging rates in the commercial insurance market, according to a release from Florida Attorney General Bill McCollum's office Monday.
Travelers had allegedly conspired with insurance giant Marsh & McLennan and other brokers and submitted fake bids, thereby inflating insurance premiums. The brokers had already determined among themselves which insurer would receive a particular policyholder’s business, a release said.
Florida alone is receiving $1.1-million, which will pay for a reimbursement pool for affected policyholders and repay the state's investigation costs.

- Madhusmita Bora, Times staff writer