NU Online News Service, May 18, 6:57 p.m. EDT--Florida regulators today ordered American International Group to turn over information concerning its admitted financial misrepresentations or risk losing its license to conduct business in Florida.
"The AIG companies must report on the nature and extent of these misrepresentations and identify and remove any parties culpable in this matter," the Florida Office of Insurance Regulation order stated.
The order also requires AIG to file, by July 1, true and correct financial statements for the years of 2000 through 2005 for all AIG entities licensed in Florida.
A spokesman for the company responded, "As we have said previously, we are committed to cooperating with all regulatory and government authorities in addressing their concerns. Consistent with this commitment, we intend to comply with all our insurance regulators' requests, including those of the Florida Office of Insurance Regulation."
The Florida Office of Insurance Regulation warned that failure to comply with its order may lead to the suspension of AIG's licensed companies in Florida and other potential action against these companies to enforce compliance.
AIG currently operates 43 licensed insurance entities in the State of Florida.
Florida's Office of Insurance Regulation stated in its order that, "The financial community has been rocked with the results of investigations by the Securities and Exchange Commission and other regulatory bodies which have led to subsequent admissions by AIG that certain reinsurance transactions were misrepresented on the company's financial statements.
"AIG's admissions appear to indicate violations of both federal and state laws."
The insurer, which is under investigation by the New York attorney general and federal prosecutors as well as the SEC, has twice delayed its annual 10-k report to the SEC and has advised that an internal audit has reduced the company's book value by $2.7 billion.
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