AIG will pay $100 Million for violating premium rules.
American International Group (AIG), the same company that received a $132 Billion government bailout, has been ordered to pay Michigan $3.25 million for violating premium reporting rules.
The Michigan Office of Financial Insurance Regulation (OFIR) says this settlement is part of a nation-wide suit. In total, AIG will have to pay $100 million in fines to insurance regulators in every state and Washington D.C.
In a press release, the OFIR states, “The multi-state examination found non-compliance with rating, forms and financial reporting laws. Most significantly, it found that AIG misreported $2.12 billion of workers compensation premium that was reported instead as general or commercial automobile liability premium.”
OFIR Commissioner Ken Ross states, “Effective deterrence requires there to be a high cost for misreporting regulatory data… AIG has 100 million reasons to file correct information henceforth.”
In addition to paying $100 million, AIG will follow a strict compliance plan and be monitored for the next year.
AIG tells the OFIR they have undergone changes in management and the current governing board has agreed to follow these steps.
