AIG Settles Overcharge Allegations For $14M

Law360, New York (September 27, 2006, 12:00 AM EDT) -- Insurance giant American International Group Inc. has agreed to pay $14 million to settle allegations that it charged “excessive and unfairly discriminatory” rates for terrorism insurance.

AIG reached the settlement with Florida insurance commissioner Kevin McCarty, who alleged in 2003 that the insurer did not justify its rates and premiums.

McCarty claimed that AIG had overcharged for workers’ compensation, fire and allied lines, commercial property, surety, commercial automobile, and terrorism insurance.

Most of the excessive charges were made to terrorism insurance policies.

“This is truly a...
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