AIG Pays $300M In Denied Insurance Death Benefits

Law360, Chicago (October 22, 2012, 9:50 PM EDT) -- American International Group Inc. has agreed to pay about $300 million to beneficiaries of life insurance policies in 39 states and the District of Columbia who were denied death benefits, the California state controller announced Monday.

In addition to paying cash to beneficiaries on thousands of life insurance policies, AIG agreed to business reforms to ensure that it rapidly pays out life insurance, annuity and retained-asset account benefits, according to State Controller John Chiang.

The settlement was announced the same day AIG said it would shell...
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