NEW YORK (Bloomberg) — American International Group Inc., the world's largest insurer, said a $317 million fund established under a legal settlement may not be enough to cover its costs for shortchanging state workers' compensation programmes.A national group representing other insurers who fund state programmes is reviewing whether AIG's 2006 settlement with former New York Attorney General Eliot Spitzer encompasses the scope of its underpayment, AIG said in a regulatory filing last week. Separately, an association of state insurance commissioners is considering potential penalties against AIG.

"AIG cannot currently estimate whether the amount ultimately required to settle these claims will exceed the funds escrowed for this purpose," the filing with the US Securities and Exchange Commission said. AIG has offered 45 states and the District of Columbia a share of the $317 million and is waiting for responses from state authorities, said spokesman Chris Winans.