AIG Pays $100M in PA Workers' Comp Violations
AIG, and its workers compensation insurance affiliates have agreed to pay $100 million in fines to insurance regulators in all 50 states and the District of Columbia for alleged premium under-reporting, acting Pennsylvania Insurance Commissioner Robert L. Pratter announced today.
The fines are included under a settlement resolving a multi-state probe that examined whether AIG violated premium reporting rules governing workers compensation insurance.Under the settlement signed by the insurance regulators of the eight states that led the examination, the company will also pay approximately $46.5 million in additional taxes and assessments.
"Accurate company financial data is an essential ingredient of proper insurance regulation," said Pratter. "AIG will pay a significant penalty, $100 million divided among the participating states, to resolve violations of insurance laws. This reflects the seriousness of the violations in this instance over a sustained period of time -primarily prior to 1996 - by AIG's prior senior management."
Under the settlement, Pennsylvania will receive $8.69 million in fines and an additional $4.63 million in state taxes.















