Frequently Asked Questions

What is this case about?

The Attorney General of the State of Connecticut conducted an investigation into certain insurance brokerage and insurance agency practices of Hilb Rogal & Hobbs Company and its subsidiaries and affiliates. The Attorney General alleged that HRH unlawfully:
  1. steered clients to favored insurance carriers to qualify for larger bonuses and contingent commissions;
  2. moved blocks of clients to favored insurers to qualify for larger bonuses and contingent commissions;
  3. implemented a “carrier consolidation” program expressly designed to steer clients to a select group of insurers in order to qualify for larger bonuses and override commissions;
  4. placed clients in “producer captive” insurance carriers of which HRH owned all or part without disclosing that ownership interest to its clients;
  5. entered into undisclosed fee arrangements whereby insurers paid undisclosed compensation to HRH for the placement of insurance;
  6. paid improper premium rebates to clients in return for that client retaining HRH as its broker; and
  7. provided preferred insurers with first looks on books of business that HRH wished to move to preferred carriers in order to increase HRH’s bonus and contingent compensation.
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What are contingent commissions?

Contingency income varies by insurer, based on any number of factors, and is typically “contingent” on results over a defined period of time with that insurer. Typical factors are amount of premiums, year over year premium growth, and profitability of the entire book of insurance placed during that time. Contingency income is designed to reward agents who produce profitable business for the insurer.

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Who is Hilb Rogal & Hobbs Company, and what do they do?

Hilb Rogal & Hobbs (HRH) is the eighth largest insurance intermediary firm in the United States, specializing in risk management associated with property and casualty, employee benefits, and professional liability.

HRH is not a direct provider of insurance. Instead, HRH specializes in selling risk management products for other insurance companies. Accordingly, while your policy may reference a different company than HRH, including, but not limited to, Hartford Insurance Company, the Travelers Insurance Company, CNA Insurance Company, Allmerica Insurance Company, Met Life Insurance Company, and Unum Provident Insurance Company, you may still be considered an “Affected Policyholder” under the terms of the Settlement.

For more information visit HRH's web page.

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How do I know what type of Policyholder I am?

If you received a Notice and Claim Form you are an Agent Client.

If you received a Notice of Election Form you are a Broker or National Override Client.

You may contact the HRH Nationwide Broker and Agent Client Settlement Center toll free at 1-800-963-3520 if you have any questions regarding your status in this Settlement.

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How many Class Members are there?

There are approximately 350,000 eligible Class Members.

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Can anyone be a part of this Settlement?

No. Only persons who had insurance policies with HRH between January 1, 2001 and December 31, 2004, and whose policies HRH was eligible to receive contingent compensation for the placement, renewal, or consultation of such policies can be a part of this settlement.

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What do I have to do to receive my share of the Settlement?

All Bar Dates have expired, and the Settlement Center is no longer accepting any Form submissions.

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Will I have to pay taxes on the money I receive?

Generally, a payout of damages is not treated as taxable compensation, but you should consult your tax advisor if you have any questions.

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How was my Initial Distribution calculated?

The distribution calculations were dependent on three main factors. Those factors are:

The premiums you paid for your policy were then weighed against these three factors to determine your benefit amount. Benefit payments were mailed on January 15, 2007.

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How was my Final Distribution calculated?

In accordance with the terms of the Settlement, all remaining funds, including net interest accrued, was distributed on a pro-rata basis. Specifically, the amount available for the Final Distribution was divided by the amount distributed in the Initial Distribution to calculate a percentage. That percentage was then multiplied by the amount you received in the Initial Distribution.

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I received a check in the Initial Distribution but I have not received a check in the Final Distribution. What happened to my check?

If you had a calculated benefit amount less than or equal to $50.00, in lieu of an additional distribution in 2008 of any remainder of the unclaimed settlement fund, your Initial Distribution settlement amount was increased by 25%. Therefore, you are not eligible to receive benefits in the Final Distribution.

If you had a calculated benefit amount greater than $50.00, you were eligible for a Final Distribution and checks were mailed on July 14, 2008.

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I am not happy with the benefit amount that I received. What can I do?

By signing and submitting the Notice of Election Form you agreed to the benefit amount included on that form. The Settlement does not allow for the appeal of benefit amounts.

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Do I have to pay attorney fees or administrative costs?

No. Under the Settlement Agreement, Hilb Rogal & Hobbs Company is responsible for paying all of the costs of administering the Settlement.

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How can I receive a copy of the Settlement Agreement?

You may view and print a copy of the Settlement Agreement by visiting the Documents page.

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