AIG to pay $100 million in workers' comp fines
The Pennsylvania Department of Insurance announced the settlement on Wednesday on behalf of the other jurisdictions.
Bailed-out insurer American International Group will pay $100 million in fines in a settlement with all 50 states over reporting errors for premiums on workers' compensation insurance.The Pennsylvania Department of Insurance announced the settlement on Wednesday on behalf of the other jurisdictions.
In addition to the fines, AIG will pay $46.5 million in taxes and assessments and has agreed to a potential $150 million in extra fines if it does not follow a compliance plan.
In a statement, Pennsylvania authorities said the actions leading to the fines primarily occurred prior to 1996 under AIG''s previous management. The primary violations, the authorities said, was the misreporting of of more than $2 billion in workers' comp premiums as general or commercial auto liability premiums.AIG was expected to make a statement on the settlement later on Wednesday.