My friends at Workers’ Comp Insider have posted a round-up of WC news, including a summary of the recent AIG settlement. Part of AIG’s $1.6 billion settlement is to go to pay back taxes owed for workers comp premiums that were not reported to the various states as such.
States tax insurance premiums to gather revenue and to build up funds to cover any costs associated with insurers that go belly-up. The reporting of premiums is also used to determine how much of the residual market is assigned to each insurer (in states that handle the residual market this way).
Turns out AIG systematically under-reported work comp premium and engaged in a variety of other financial shenanigans to avoid taxes and assessments. And now they are paying $343 million for their sins.
What does this mean for you?
The final note, we hope, in the denoument of AIG’s reputation as a respected and feared company.
Feb
14
