Connecticut Insurance Commissioner Thomas Leonardi announced Monday that the state has received just over $1 million in fines and penalties from American International Group Inc. as part of a multi-state settlement over allegations that the company under-reported its premiums of workers compensation insurance.
“The settlement is the result of close coordination with state insurance regulators from around the country,” Commissioner Leonardi said. “The fines and penalties owed to our state will be deposited into the General Fund, benefiting Connecticut taxpayers.”
A multi-state examination, begun in 2008, determined that AIG under-reported more than $2 billion in workers’ compensation premiums. Instead, the company attributed the workers comp premiums to other insurance lines of business, reducing its taxes and assessments.
AIG agreed to pay $100 million in fines and $46.5 million in premium taxes and assessments. All 50 states participated in the settlement. The 64-page regulatory settlement is posted on the Connecticut insurance department’s website.