AIG pays $100m to settle errors
NEW YORK (Reuters) - 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 yesterday 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.
Pennsylvania authorities said the primary violation was the misreporting of more than $2 billion in workers' comp premiums as general or commercial auto liability premiums.
The examination focused on actions between 1975 and 1996, the same period that was the subject of the 2006 regulatory settlement between AIG and New York state, AIG spokesman Mark Herr said in a statement.