ALBANY, New York (AP) — Prudential Insurance Co. will pay $19 million in restitution and penalties to settle an investigation of payments made to brokers to steer business its way, New York Attorney General Eliot Spitzer's office said yesterday.The settlement came as part of a multiyear investigation of bid rigging and price fixing in the insurance industry. Spitzer has argued that "contingent commissions" paid to brokers and agents to steer business to insurance companies are the equivalent of kickbacks that unfairly increase the prices paid by insurance clients.

Under the agreement, Prudential Insurance, a unit of Newark, New Jersey-based Prudential Financial Inc., will end the payments on group insurance products — including life, disability and long-term care — and will disclose broker compensation to employers shopping for insurance.

The company will pay $16.5 million in restitution to clients and penalties of $2.5 million.

"Today's settlement compensates nationwide employers seeking to provide group benefits for their employees," Spitzer said. "This settlement also helps restore integrity to the insurance marketplace by mandating complete disclosure of payments to brokers."

Prudential said it cooperated with Spitzer's investigation and voluntarily established procedures to disclose contingent commissions going back to January 2004, spokesman Bob DeFillippo said.

"The settlement resolves the investigation and is in the best interest of Prudential and its policy holders," Prudential said in a statement.

Investigators said that from 1999 to 2005, Prudential paid about $60 million in contingent fees to brokers for about $18 billion in insurance premium business.

Prudential provides group benefits to about 19 million people nationwide. The company has had contingency fee agreements with numerous brokers, including Marsh & McLennan Co. Inc, Aon Corp., USI Holdings Inc., Universal Life Resources and Pacific Resources, according to Spitzer's office.

Spitzer's probe of the industry began in 2004 and more than 20 insurance companies have agreed to pay more than $3 billion so far.

Last month, UnumProvident Corp. in Chattanooga, Tenn., agreed to pay $15.5 million in restitution and penalties to settle similar allegations.

Shares of Prudential Financial Inc. rose 27 cents to $86.58 in afternoon trading on the New York Stock Exchange.