Allied World Assurance Company (AWAC) has agreed not to enter into any type of "pay-to-play" arrangements in Texas or to represent itself as an affiliate, subsidiary or division of American International Group (AIG) or Chubb Corporation.

Those are amongst the terms connected to AWAC's $2.1 million settlement of a case that had been under investigation by the anti-trust and fraud division of the Attorney General of Texas.

Bermuda-based AWAC has consistently denied any of its activities in Texas violated antitrust laws, insurance laws or any other laws.

However, last month it agreed to pay $2.1m in settlement and to be bound by terms of an agreed final judgement and stipulated injunction from the District Court of Travis County in Texas.

It has agreed to operate as an independent competitor in regard to its operations in the state and "shall not co-ordinate with AIG or Chubb Corporation as to pricing, marketing, underwriting or quoting of its insurance policies."

It shall not represent itself as a division, subsidiary or affiliate of AIG or Chubb or make any representations that it cannot or will not compete with, quote or bid against AIG or Chubb.

And the judgement also states AWAC "shall not pay or accept a request to pay any compensation to a broker or agent in exchange for the broker's or agent's inclusion of Allied World on a list of insurance companies from which the broker or agent will solicit bids or quotes for clients, nor enter into any type of 'pay-to-play' arrangement."