Aon Corp. is negotiating with at least three U.S. state attorneys general in order to reach a broad settlement of investigations into its business practices, according to the people familiar with the matter.

The Chicago-based insurance broker is holding discussions with the offices of attorneys general in Connecticut, New York and Illinois, each of which was investigating the company’s practices as part of a broader inquiry into the insurance industry’s relationships with brokers.

People familiar with the talks don’t exclude that a settlement could be reached within as little as a month.
Aon, second-biggest U.S. insurance broker, is one of several big insurance brokers being investigated by attorneys general and insurance commissioners in several states. In October, New York Attorney General Eliot Spitzer sued Aon’s bigger rival, Marsh & McLennan, indicting it of falsifying the competition for corporate policyholders while actually driving business to favored insurance companies. Settling the case, Marsh apologized for the actions of employees but neither admitted nor denied wrongdoing.

So far, Aon hasn’t been formally accused of wrongdoing. People familiar with the matter have said Mr. Spitzer’s office is also investigating whether Aon transferred business to insurers agreeing to use Aon’s services while purchasing reinsurance, which is essentially insurance for insurers.

Aon reported that an internal investigation found unspecified violations of its code of conduct by "some employees," but hasn’t elaborated. A spokesman Friday refused to comment on the investigation or settlement talks.