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Posts Tagged ‘American International Group’

AIG to pay $146.5M for workers compensation settlement

Posted by defensebaseactcomp on June 5, 2012

Associated Press at WJLA Tallahassee  June 5, 2012

American International Group Inc. and its affiliates have agreed to pay $146.5 million to all 50 U.S. states and the District of Columbia to settle a complaint that it misreported billions of dollars in workers compensation premiums in past years

Florida Insurance Commissioner Kevin McCarty, whose state was among those pressing the complaint, announced the settlement Tuesday.

AIG was accused of misreporting $21.1 billion in workers compensation premium as other lines of insurance in past years.

The company agreed to pay a $100 million national penalty and $46.5 million in additional premium taxes and assessments.

McCarty said Florida’s share of the settlement will total $14.3 million. He said the misreported premiums had wrongly reduced AIG’s taxes and assessments.

Telephones messages left for AIG by The Associated Press weren’t immediately returned

Posted in AIG and CNA, Civilian Contractors, Defense Base Act, Department of Labor, Follow the Money | Tagged: , , , , | 4 Comments »

Court OKs AIG’s $450 million workers comp settlement

Posted by defensebaseactcomp on January 17, 2012

A good recovery, but the settlement leaves a potential $550 million in unrecovered funds

Rueters December 27, 2011

A federal judge has approved American International Group Inc’s (AIG.N) $450 million settlement with rival insurers to end litigation accusing AIG of underreporting premiums on workers’ compensation policies.

AIG will make the payment after rivals accused it of understating its market share in workers compensation to state insurance regulators, allowing it to shortchange state insurance pools by making lower contributions. Rivals claimed the understatements dated back to the 1980s.

Many states require firms that sell workers compensation insurance to also fund pools to cover injuries for workers at companies that cannot obtain coverage on the open market, in some cases because their jobs are too risky.

District Judge Robert Gettleman in Chicago approved the AIG settlement on December 21, calling it “fair, reasonable, and adequate.”

Final approval will take effect when Gettleman issues an opinion addressing a variety of issues in the case, the judge wrote.

Liberty Mutual Group had opposed the settlement, saying it concealed the true nature of AIG’s underreporting and the resulting damages.

A Liberty Mutual spokesman was not immediately available for comment.

AIG last December agreed to pay $146.5 million in fines, taxes and assessments in a settlement with all 50 U.S. states over alleged workers compensation reporting errors.

The case is Safeco Insurance Co of America et al v. American International Group Inc et al, U.S. District Court, Northern District of Illinois, No. 09-02026

Hat Tip to John Gelman at Workers Compensation blog

Posted in AIG and CNA | Tagged: , , , , | 1 Comment »

Emails obtained by Darryl Issa show AIG told to limit disclosure of important information

Posted by defensebaseactcomp on January 10, 2010

Darryl Issa is one of only a few who has spoken up about the abuses against injured contractors by AIG and CNA.

Geithner’s Fed Told AIG to Limit Swaps Disclosure

The Federal Reserve Bank of New York, then led by Timothy Geithner, told American International Group Inc. to withhold details from the public about the bailed-out insurer’s payments to banks during the depths of the financial crisis, e-mails between the company and its regulator show.

AIG said in a draft of a regulatory filing that the insurer paid banks, which included Goldman Sachs Group Inc. and Societe Generale SA, 100 cents on the dollar for credit-default swaps they bought from the firm. The New York Fed crossed out the reference, according to the e-mails, and AIG excluded the language when the filing was made public on Dec. 24, 2008. The e-mails were obtained by Representative Darrell Issa, ranking member of the House Oversight and Government Reform Committee.

The New York Fed took over negotiations between AIG and the banks in November 2008 as losses on the swaps, which were contracts tied to subprime home loans, threatened to swamp the insurer weeks after its taxpayer-funded rescue. The regulator decided that Goldman Sachs and more than a dozen banks would be fully repaid for $62.1 billion of the swaps, prompting lawmakers to call the AIG rescue a “backdoor bailout” of financial firms.

“It appears that the New York Fed deliberately pressured AIG to restrict and delay the disclosure of important information,” said Issa, a California Republican. Taxpayers “deserve full and complete disclosure under our nation’s securities laws, not the withholding of politically inconvenient information.”

Full story here

Posted in AIG and CNA | Tagged: , , , , , , | 1 Comment »

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