American International Group Inc. (AIG) will pay $146.5 million in penalties to settle allegations that the company underreported workers' compensation premiums for decades. AIG reached the settlement with insurance regulators from each of the 50 states and District of Columbia in 2010; the agreement became effective on May 29, 2012.
"This important settlement is a significant win for California businesses and consumers and is the culmination of an extensive effort by insurance regulators across the country to investigate and ultimately correct serious issues of non-compliance by a major national commercial insurer,” said Dave Jones, California Insurance Commissioner. Under California law, the $15.6 million payment to settle with the state will be paid directly to the State's General Fund.
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