AIG Probed by Illinois State Regulators, Congress
Bloomberg.com is reporting that American International Group Inc. (AIG)--the company that has had nearly non-stop media attention as a result of being bailed out four times by the U.S. government in recent months--is being probed by 50 state insurance regulators who are examining whether the firm violated rules governing workers’ compensation sales. Illinois state regulators are involved in the investigation.
The probe is an offshoot of a 2005 lawsuit initiated by then-New York Attorney General Eliot Spitzer, who said AIG shortchanged the premiums it used when in calculating its obligations to state pools. In most states, companies that sell workers’ compensation must fund pools that serve as insurers of last resort to cover injuries at employers that pose unattractive risks.
In addition, AIG is also is under investigation by a House of Representatives committee over payments made to public relations companies as a result of the federal bailout plan. Edward Liddy, chief executive of AIG, has been asked by the House whether AIG paid public relations firms to attack critics of AIG and the federal bail-out. They are asking for letters, contracts and memorandum between AIG and their PR firm that addresses their communications strategy. The government states the purpose of the probe is to ensure that federal funds are not being misused. The full Financial Times article can be found here.
These probes are interesting for a number of reasons, but highlight what our attorneys have been dealing with for years: insurance is a business and carriers are always looking out for their bottom line. That is why it is important to consult with an experienced Chicago personal injury attorney who has experience fighting insurance insurance companies if you have been injured in an accident. The lawyers at Shea Law Group have handled hundreds of worker’s compensation and accident cases throughout Chicago where insurance companies were involved. We are not pressured by their tactics and as a result, will not settle cases for an unsatisfactory amount. If you have been injured, please contact us at 877-365-0040.
