BATON ROUGE, La. (AP) — Louisiana will get $6.1 million from American International Group Inc. in a settlement over alleged under-reporting of workers' compensation insurance premiums.
Insurance Commissioner Jim Donelon says that AIG will pay the state $3.8 million in additional taxes and $2.3 million in fines. Donelon says he believes the amount AIG did not report is much larger, but he wanted to end the dispute and collect money for the state. All 50 state insurance regulators agreed to the settlement.
Nationally, Donelon says AIG agreed to $100 million in fines and payment of an additional $46.5 million in taxes and assessments. The agreement includes 24 months of compliance monitoring at the end of which AIG could face up to $150 million in additional fines for underpayments.
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