Baltimore, MD – The Maryland Insurance Administration recently collected $2,022,805 in penalties from American International Group (AIG) as part of a multi-state settlement. The agreement was reached following allegations that AIG under-reported its workers compensation premiums for decades. In Maryland, premiums determine how much an insurance company must pay in taxes and other assessments.
“The examination of AIG found that it had underestimated its workers compensation premiums by more than $2 billion,” said Maryland Insurance Commissioner Therese M. Goldsmith. “Through this settlement, the company has corrected its financial reports and commits to new processes moving forward.”
All 50 states and the District of Columbia were parties to the $146.5 million national settlement with AIG, which took effect May 29. The 50-page regulatory settlement agreement is available online.
Source: MD Insurance Administration