HARRISBURG, Pennsylvania (AP) — Zurich American Insurance Co. will pay $122 million to resolve claims of bid-rigging and price-fixing in the commercial insurance market under a nationwide settlement negotiated by Pennsylvania and ten other states, state Attorney General Tom Corbett said yesterday.The amount to be paid to policyholders in all 50 states reflects the final terms of a settlement that was filed yesterday in state courts, said Nils Frederiksen, a spokesman for Corbett.

The states discovered that Zurich American failed to disclose it paid "contingent commissions" to insurance brokers and conspired with brokers in a scheme to overcharge commercial policyholders, Corbett said.

Zurich American also will pay an additional $20 million to the investigating states for costs and fees. Preliminary settlement terms announced in March called for policyholders nationwide to receive $152 million in refunds, but the company was permitted to credit $30 million toward that amount in other nationwide settlements it is paying under a separate agreement with New York, Connecticut and Illinois, Zurich in North America spokesman Keith Owens said.

The company is not admitting any wrongdoing, Owens said.

The multi-state coalition in the settlement also includes California, Florida, Hawaii, Maryland, Massachusetts, Michigan, Oregon, Texas, Virginia and West Virginia.