An Agreement Between the Attorney General of the State of Connecticut and the Insurance Commissioner of the State of Connecticut and Hilb Rogal & Hobbs Company and its subsidiaries and affiliates

NOTICE OF SETTLEMENT INFORMATION

1.   WHAT IS THIS SETTLEMENT 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 in the Complaint that, inter alia, 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.

2.   WHO’S INCLUDED?

Included in the settlement are “Affected Policyholders”.  The Affected Policyholders are comprised of three groups.
1. “Broker Clients” which consists of all HRH U.S. brokerage business clients on whose insurance placements, renewals, consultations, or service HRH was eligible to receive Contingent Compensation between January 1, 2001 and December 31, 2004. 
2. “National Override Clients” which consists of all HRH U.S. agency clients on whose insurance placements, renewals, consultations, or service HRH was eligible to receive Contingent Compensation pursuant to a National Override Agreement with Hartford Insurance Company, Travelers Insurance Company, CNA Insurance Company, Allmerica Insurance Company, Met Life Insurance Company, and Unum Provident Insurance Company between January 1, 2001 and December 31, 2004. 
3. “Agent Clients” which consists of all HRH U.S. agency clients, other than National Override Clients, on whose insurance placements, renewals, consultations, or service HRH was eligible to receive Contingent Compensation between January 1, 2001 and December 31, 2004.

3.   WHAT ARE THE BENEFITS?

The Settlement provides the following monetary relief to Members of the Settlement Class:
1. HRH agrees to pay thirty million dollars ($30,000,000) into a settlement fund;
2. The fund shall be allocated nineteen million five hundred thousand dollars ($19,500,000) between Broker Clients and National Override Clients and ten million five hundred thousand ($10,500,000) to Agent Clients;
3. All of the money paid into the Fund and any net interest earned thereon shall be paid to Affected Policyholders; and

4.   HOW DO I RECEIVE A PAYMENT?

Benefits will be determined and Eligible Class Members will be mailed a Notice of Election Form detailing the information.

Benefit payments will commence in January 2007.

Agent Clients:
If you wish to participate in the settlement, you must complete and return the Claim Form to the Claims Administrator at the following address:  HRH Nationwide Broker and Agent Client Settlement Center, P.O. Box 130059, Dallas, TX 75313-0059.  Claim Forms must be mailed to the Settlement Center, postmarked by July 15, 2006.  The Claims Administrator will work with the parties to determine whether the person submitting the Claim Form has a valid claim.  If the claim is determined to be complete and eligible, on or before August 21, 2006, you will be mailed a Notice of Election Form containing the amount of the distribution you are eligible to receive from the Fund. In order to receive the settlement distribution from the Fund, you will have to return the Notice of Election Form to the Settlement Center no later than November 21, 2006.  By completing and returning the Claim Form and Notice of Election Form by the above referenced deadlines, you will qualify as a Participating Agent Client.

Broker and National Override Clients:
If you wish to participate in the settlement, you must complete and return the Notice of Election Form to the Claims Administrator at the following address: HRH Nationwide Broker and Agent Client Settlement Center, P.O. Box 130059, Dallas, TX 75313-0059. Notice of Election Forms must be mailed to the Settlement Center no later than November 21, 2006. By completing and returning the Notice of Election Form by the above referenced deadline, you will qualify as a Participating Broker or National Override Client.