After agreeing to pay $146 million to state regulators of all 50 states and the District of Columbia in 2010, American International Group (AIG) is finally doling out their share. Upon the discovery that AIG "hid at least $2.12 billion in workers' compensation premium by attributing it to other lines of insurance and thereby lowering its assessments and taxes," the company agreed to pay $100 million in fines and $46.4 million in premium taxes and assessments after a federal judge approved the settlement with the states in December 2010. Because AIG had to first resolve other outstanding issues, the state regulators are just now receiving their share.
Before AIG was able to make good on their agreement to pay $146 million in damages, they had to first pay off several other settlements to their competitors over residual market levies. One settlement cost the company $450 million, while another cost them $25 million. The reason for the uproar over AIG's business misconduct is because they have "systematically underreported workers' compensation insurance premium by putting this premium into the general liability or commercial automobile liability categories," said Kevin McCarty, the Florida Insurance Commissioner, and "the practical effect of this misreporting was to report premium in lines of business with lower residual market obligations or premium tax rates and assessments.
Several of AIG's competitors, like Liberty Mutual, are committed to holding this company accountable. Although they have personally received what was thought to be a fair settlement of $450 million, Liberty Mutual has since filed an appeal to fight for more. They estimate that AIG's underreporting was much more rampant than others have suggested. If you have any questions about obtaining workers' compensation in the wake of an injury sustained at your workplace, a Raleigh personal injury attorney from the Whitley Law Firm is ready to help. It is imperative to know your rights when it comes to claiming rightful compensation, so do not hesitate to take action immediately.
Contact the firm today for more information.