Oregon AIG Settlement

Oregon will receive about $3.6 million as part of a multi-state settlement with the American International Group over misreporting of workers’ compensation insurance premiums.

A two-year examination of AIG and its Chartis insurance companies found the companies misreported $2.12 billion in workers’ compensation premium nationwide as general or commercial automobile liability premium.

In Oregon, AIG’s misreporting led to an underpayment of $2.4 million into the workers’ compensation premium assessment, which funds the state’s workplace safety and workers’ compensation programs. In the settlement, AIG agreed to pay $2.4 million to the Department of Consumer and Business Services for the underpayment, as well as a $1.2 million penalty, which will be deposited into Oregon’s General Fund. In total nationwide, AIG’s settlement consisted of an agreement to pay $100 million in fines and payment of an additional $46.5 million in premium taxes and assessments.