No 3 broker Willis is embroiled in a court battle with authorities in the US state of Minnesota over allegations of conflicts of interest, deceptive practices, receiving contingent commissions from insurers and commission “churning”. Willis says it’s “frankly appalled and offended” by the allegations and the manner in which they have been handled.

Minnesota Attorney-General Mike Hatch has filed a lawsuit in a St Paul court accusing Willis of not responding adequately to his investigations.

Some of the allegations revolve around the recent sale by Willis of its wholesale operation, Stewart Smith. Mr Hatch says he suspects Willis of steering business through Stewart Smith in the past to add another level of commissions to its charges.

In a statement, Willis says the case is not being handled constructively or professionally, and that Mr Hatch “chose to call the press and simultaneously file this motion, which contains a number of inflammatory and inaccurate statements”.

Meanwhile, Aon Corporation has reached a $38 million “tentative settlement” of a class action related to undisclosed contingent commissions. The settlement follows a recent $190 million payout to settle cases in its home state of Illinois as well as Connecticut and New York.