The Oregon Department of Consumer and Business Services reported on March 9 that American International Group will pay $100 million in fines under a settlement with all 50 states — which includes $3.6 million for Oregon — over reporting errors for premiums on workers compensation insurance.
AIG will also pay $46.5 million in taxes and assessments, and could pay added fines, up to $150 million, if it does not adhere to a compliance plan, according to the ODCBS. (WCxKit)
A two-year review of bailed-insurer and its Chartis insurance unit came to the conclusion that the companies misreported $2.12 billion in workers comp premiums across the U.S.
The misreporting led to a $2.4 million underpayment to Oregons workers comp premium assessment, which funds workplace safety and workers comp programs in the state.
In addition to paying that $2.4 million to the consumer agency, AIG will pay a $1.2 million penalty, which will go into Oregons general fund.
Author Robert Elliott, executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers Compensation costs, including airlines, healthcare, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. See www.LowerWC.com for more information. Contact:Info@ReduceYourWorkersComp.com or 860-553-6604.
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Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workers comp issues.
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