AIG Workers’ Comp Settlement Delayed by Negotiations
Three years after American International Group Inc. agreedto pay a $343 million settlement to resolve allegations that it underreportedworkers’ compensation premiums to states, the company is still involved innegotiations with insurance regulators in several states.
New York based AIG entered a settlement agreement with theNew York Attorney Eliot Spitzer and the New York Insurance Department todisperse $343 million among states for allegedly underpaying premium taxes andresidual market assessments between 1985 and 1996.
However most of the money remains in a trust fund whileinsurance regulators negotiate with AIG to decide whether a larger settlementis in order. One insurance regulator was quoted as saying “Not all states weresatisfied with the size of the agreement… In terms of the settlement capping at$343 million, AIG may not be out of the woods.”
The original deadline for states to opt into the 2006agreement was set for that year, but has been extended several times and is nowset for December 31 of this year.
If you or someone you know has been injured in theworkplace, please contact the Raleigh Workers Compensation Attorneys of Scudder & Hedrick, PLLC by calling (919) 851-3311.