AIG Settles Workers Compensation Insurance Complaint with All 50 States

American International Group Inc. (AIG) and its affiliates have agreed to pay $146.5 million to all 50 states and the District of Columbia to settle a complaint that it misreported billions of dollars in workers compensation premiums in past years.

Source: Source: AP | Published on June 5, 2012

Florida Insurance Commissioner Kevin McCarty, whose state was among those pressing the complaint, announced the settlement Monday.

AIG was accused of misreporting $21.1 billion in workers compensation premium as other lines of insurance in past years.

The company agreed to pay a $100 million national penalty and $46.5 million in additional premium taxes and assessments.

McCarty said Florida’s share of the settlement will total $14.3 million. He said the misreported premiums had wrongly reduced AIG’s taxes and assessments.