Michigan workers comp lawyer discuses class action lawsuits alleging AIG under reported premium information.
InsuranceJournal.com reports on new class action lawsuits filed against AIG over workers comp reporting. It is alleged that AIG misrepresented the amount of premiums it collected in several states.
“By making it appear that less money in workers comp premium was collected, AIG caused insurance regulators to assess artificially inflated fees on insured employers for certain state mandated workers comp programs, the attorneys argue.”
AIG says the suits are an attempt to reopen charges that have already been settled and has vowed to vigorously defend against these allegations.
AIG has already paid the Michigan Office of Financial and Insurance Regulation $3.25 million as part of a $100 million dollar 50-state settlement.
These new allegations arise from self-insured businesses that claim to have paid more because of AIG underreporting.
Michigan businesses must pay into a Second Injury Fund and the amount owed is based upon a proportionate share of total premiums.
Our 2 cents
Accurate reporting is vital to the integrity of the workers comp system. Self-insured employers should be compensated for any insurance company wrong doing. We hope these employers get their day in court.
To speak with one of our workers comp lawyers in Michigan, call (855) 221-2667 for a free consultation.
– Alex Berman is the founder of Michigan Workers Comp Lawyers. Hes been representing injured and disabled workers exclusively for more than 35 years. Alex has helped countless people obtain workers comp benefits and never charges a fee to evaluate a case.