SPRINGFIELD – Illinois Department of Insurance Director Andrew Boron today announced Illinois has received $3,760,657 as a result of a multi-state settlement agreement with American International Group, Inc., (AIG) for incorrect reporting of workers compensation premiums. A multi state investigation examined whether AIG violated premium reporting rules governing workers compensation insurance.
“AIG is accused of systematically reporting more than two billion dollars of workers compensation premium as other lines of insurance,” said Director Boron. “I am pleased the investigation has resulted in millions of dollars in unpaid taxes owed to Illinois and that AIG will change its reporting practices concerning workers compensation premium.”
As part of the settlement agreement, AIG paid a $100 million dollar penalty and an additional $46.5 million in additional premium taxes and assessments. AIG also entered into a compliance plan concerning the financial reporting of its workers compensation premium.
The settlement agreement was announced earlier this month between AIG and its affiliates with all 50 states and the District of Columbia. A copy of the settlement agreement is available on the DOI website at http://insurance.illinois.gov. Consumers with any question concerning this examination, or who have any question or concerns about their insurance, should contact the Department’s Consumer Division at http://insurance.illinois.gov or call 866-445-5364.