8-KMaterial AgreementsOther EventsExhibits & Filings

Aon plc 8-K Report, Material Agreement (Feb 17, 2010)

Filed February 17, 2010For Securities:AON

Summary

This 8-K filing by Aon plc (AON) on February 17, 2010, primarily concerns the entry into an Amended and Restated Settlement Agreement with various State Agencies, including the Attorneys General of New York, Illinois, and Connecticut, and insurance regulators. This new agreement, effective February 11, 2010, supersedes a previous settlement from March 4, 2005. The key impact for investors is the clarification and modification of compensation disclosure requirements across the United States. The Amended Settlement Agreement mandates that Aon provide compensation disclosures that meet or exceed specific state regulations, notably New York's Regulation No. 194, and adhere to similar requirements in Illinois, Connecticut, and other states where Aon operates. While the new agreement relaxes certain restrictions, it also requires Aon to maintain robust compliance programs and refrain from specific prohibited activities. Importantly, Aon remains bound by separate, more restrictive settlement agreements with Florida and a coalition of 29 other states that prohibit contingent compensation from insurers.

Key Highlights

  • 1Aon entered into an Amended and Restated Settlement Agreement with New York, Illinois, and Connecticut State Agencies, effective February 11, 2010.
  • 2The new agreement supersedes a prior settlement agreement dated March 4, 2005.
  • 3Aon is required to provide compensation disclosures compliant with specific state regulations, including New York's Regulation No. 194, across all U.S. states, D.C., and territories.
  • 4The agreement emphasizes Aon's commitment to maintaining compliance programs, employee training on ethics and antitrust, and refraining from certain prohibited activities.
  • 5Aon continues to be subject to prior agreements with Florida and 29 other states that prohibit contingent compensation from insurers.
  • 6The filing includes the full Amended Settlement Agreement as an exhibit, allowing for detailed review by interested parties.

Frequently Asked Questions

The main purpose of the Amended Settlement Agreement is to update and supersede a previous settlement by clarifying compensation disclosure requirements for Aon across all U.S. states and territories. It aims to ensure Aon's disclosures meet or exceed specific state regulations while maintaining compliance programs and avoiding prohibited practices.

No, the Amended Settlement Agreement itself does not explicitly permit contingent compensation. Furthermore, Aon remains bound by separate settlement agreements with Florida and a coalition of 29 other states that explicitly prohibit Aon from directly or indirectly accepting or requesting contingent compensation from any insurer.

The agreement requires Aon to maintain rigorous compliance programs and provide ongoing training to employees regarding business ethics, conflicts of interest, and antitrust practices. It also necessitates standardized compensation disclosures across all jurisdictions, which could streamline operations but also requires diligent adherence to evolving regulatory standards.

The Amended Settlement Agreement supersedes the Original Settlement Agreement dated March 4, 2005. While the filing does not detail every change, it emphasizes updated compensation disclosure requirements that are at least as stringent as New York's Regulation No. 194 and similar rules in other states. It also requires continued compliance programs and a commitment to refrain from certain prohibited activities.