NEW YORK (CNNMoney.com) - The insurance firm Zurich American Insurance Co. agreed to pay $171 million to nine states in a commercial insurance bid-rigging case, state officials said Sunday.

The company, a division of the Swiss firm Zurich Financial Services, will pay policyholders over $150 million in refunds and an additional $20 million in investigative costs, according to the Texas attorney general's office.

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The state of Texas said the investigation revealed that Zurich worked with insurance brokers to overcharge commercial policyholders, including large businesses, universities and local governments.

"Businesses shopping for commercial insurance were deceived into believing they were getting the best deals available," Texas Attorney General Greg Abbott said in a prepared statement.

California, Florida, Hawaii, Maryland, Massachusetts, Oregon, West Virginia and Pennsylvania are also expected to receive a portion of the settlement, although the final terms still face court approval, according to the Texas attorney general's office.

Zurich admitted to no wrongdoing in the settlement, the Wall Street Journal reported Monday.

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