AIG to pay $146 million over workers compensation

Pennsyl-vania's chief insurance regulator says American Insurance Group Inc and its insurance affiliates have agreed to pay more than $100 million in fines and other penalties to resolve claims the insurer violated workers compensation regulations. Acting Pennsylvania Insurance Commissioner Robert Pratter said the settlement with eight states resolves a probe into allegations AIG under-reported some $2.12 billion of workers compensation premiums.
Insurance regulators in all 50 states and the District of Columbia will split the $100 million in fines. New York-based AIG also agreed to pay about $46.5 million in additional taxes and assessments. The deal must be adopted by at least 35 additional states by March 1.