Louisiana has signed on to a multistate settlement over American International Group’s (AIG) admitted practice of under reporting workers’ compensation insurance premiums. Louisiana is slated to receive $3,842,988 in additional taxes and assessments, and $2,278,504 in fines in the settlement, the Louisiana Department of Insurance reported.
AIG admitted to under reporting over $2.1 billion in workers’ compensation insurance premium between 1985 and 1996.
The LDI reported that Insurance Commissioner James Donelon is convinced that the amount of under reporting by AIG was substantially more than the amount that it concedes in the settlement. Donelon said he signed the agreement in order to settle the matter and collect money for the state.
All 49 of the other state regulators also signed off on the agreement.
In total nationwide, AIG agreed to pay $100 million in fines and payment of an additional $46.5 million in premium taxes and assessments. In addition to the monetary penalties, the settlement includes the following:
- Adoption of a compliance plan ensuring the company’s compliance with workers’ compensation rates, forms, and financial reporting requirements.
- Monitoring the company’s compliance with the plan for a 24-month period.
- An additional fine of up to $150 million if an examination at the end of the 24-month period demonstrates non-compliance by the company.
Source: Louisiana Department of Insurance
Topics Louisiana Workers' Compensation AIG
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