Date: August 14, 2012
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AIG Pays $900,000 Settlement to Wisconsin
Madison, WIWisconsin Insurance Commissioner Ted Nickel announced that American International Group (AIG) has paid a $923,497 settlement to the state of Wisconsin. The payment was the result of a multi-state settlement agreement reached by AIG and insurance regulators.
"Our agreement settling these issues with AIG further demonstrates the effectiveness of the state-based regulatory system," stated Nickel. "States were able to pool resources to ensure these issues were investigated appropriately and thoroughly and agree to a penalty that reflects the significance of the issues in this case."
The multi-state market conduct examination was called in response to concerns raised relating to AIG's practices in the writing and reporting of worker's compensation insurance. State insurance regulators examined AIG's use of non-approved forms and premium rates as well as the company's reporting of worker's compensation premiums.
Under the multi-state agreement, AIG agreed to pay a monetary penalty and, as a participant to the agreement, Wisconsin shared in the settlement. AIG also agreed to pay outstanding premium taxes due as a result of reallocation of worker's compensation premiums. Wisconsin did not receive any additional premium taxes as a result of the settlement. AIG also agreed to a compliance plan to correct the findings of the multi-state examination report. The compliance plan will be monitored for 24 months.
A copy of the settlement agreement can be viewed at http://oci.wi.gov/orders/12c34750.pdf (opens in new window.).
Created by the Legislature in 1871, Wisconsin's Office of the Commissioner of Insurance (OCI) was vested with broad powers to ensure that the insurance industry responsibly and adequately met the insurance needs of Wisconsin citizens. Today, OCI's mission is to lead the way in informing and protecting the public and responding to its insurance needs.