The Hartford settled with the attorneys general of New York and Connecticut last week for providing kickbacks to group annuity sales brokers in the form of undisclosed expense reimbursements between 1998 and 2004.

Hartford agreed to a $20 million fine and to a three-year ban on the use of contingent compensation for its terminal/maturity group annuities. Of this fine, $16.1 million will be paid to plan sponsors and $3.9 million will be divided equally between New York and Connecticut.

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