The nation’s largest insurer, American International Group Inc., AIG, and a major provider of workers compensation insurance to employers under the Longshore and Harbor Workers’ Compensation Act (LHWCA) has admitted to misreporting $2.12 billion of workers compensation premium, according to a recent story by the Associated Press.
AIG’s scheme allowed it to misrepresent it’s financial condition to Insurance Commissioners in all 50 states and the District of Columbia. AIG has now agreed to pay $146.5 million in fines and penalties and to subject itself to compliance audits for the next two years.
The irony of today’s news is, in the past, AIG has been quick to “controvert”, or dispute, LHWCA claims based on alleged misconduct by injured longshore workers.
We have always known, but now we have proof of who the bad guy really is.
Shame on you AIG.