ALBANY, N.Y. (AP) – A large disability insurance company has ended what New York Attorney General Eliot Spitzer called deceptive practices and secret payments to brokers, according to a $15.5 million settlement announced Wednesday.

UnumProvident Corp., based in Chattanooga, Tenn., agreed to pay restitution to policy holders and a civil penalty of $1.9 million. Many of the reforms in the settlement, which Spitzer said should serve as a model for the industry, were suggested by Unum, Spitzer said.

Spitzer had accused the company of improperly compensating brokers who pitched several insurance companies’ policies to prospective customers. Spitzer said the company will be the first life and disability insurer to prohibit “contingent commissions” on group insurance policies and to disclose all compensation of brokers.

The practices prohibited under the settlement were done throughout the industry, said Jim Sabourin, spokesman for Unum which is the largest disability insurer in the nation.

He said he expects the settlement within weeks will lead to new ways to compensate brokers and will be a model for the rest of the industry.

Spitzer said Unum’s previous practices included paying brokers based on their ability to get customers to renew policies despite rate increases. The company also made loans to brokers that could be paid off in exchange for the broker bringing Unum business.

UnumProvident, which was created by the merger of Maine-based Unum and Chattanooga-based Provident, has nearly 12,000 employees, including 3,000 in Portland.