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The American International Group Inc., as part of a $146.5 million multi-state settlement over allegations that it under-reported workers' compensation insurance premiums to illegally avoid taxation and assessments, will pay Connecticut a little more than $1 million.
State Insurance Commissioner Thomas B. Leonardi said today that AIG, the insurance giant that received a federal government bailout of $182 billion during the nation’s 2008 financial crisis, had under-reported more than $2.1 billion in workers’ compensation premiums. The company substituted other insurance lines in its financial reports, according to an investigation undertaken four years ago, thereby reducing its tax obligation and other assessments.
The under-reporting dates back more than a quarter of a century, according to the settlement agreement, available online at http://www.catalog.state.ct.us/cid/portalApps/images/reports/005378826-5378826.pdf.
AIG agreed to pay all 50 states a total of $46.5 million in taxes and assessments, plus a $100 million fine.
“The settlement is the result of close coordination with state insurance regulators from around the country,” Leonardi said in a statement. “The fines and penalties owed to our state will be deposited into the General Fund, benefiting Connecticut taxpayers.”