American International Group (AIG) and its affiliates have approved to disburse nearly $146.5m to all 50 states and the District of Columbia to settle a workers compensation premium dispute.
Florida Insurance Commissioner Kevin McCarty, whose state was also a part of the claimant group, said that Florida’s share of the settlement stood at $14.3m, as the misreporting of the premiums resulted in reduction of AIG’s taxes and assessments that was wrong.
During the course of probe, the regulator alleged that AIG had misreported approximately $21.1bn in workers compensation premium as other lines of insurance during the past years.
As part of an agreement to settle the dispute, the insurer has agreed to pay a $100m national penalty and $46.5m in additional premium taxes and assessments.
The settlement followed a related $450m residual market settlement and $25m settlement with insurance guarantee associations earlier this year, as reported by The Washington Post.