Michigan workers compensation lawyer explains why AIG has 100 million reasons to file correct information henceforth.
According to Crain’s Detroit Business, AIG has paid the Michigan Office of Financial and Insurance Regulation $3.25 million as part of a 50-state, $100 million settlement for alleged underreporting of workers’ compensation insurance premiums.
Effective deterrence requires there to be a high cost for misreporting regulatory data, OFIR Commissioner Ken Ross said. AIG has 100 million reasons to file correct information henceforth.
Under the terms of the settlement, AIG will also:
– Enter into a compliance plan containing agreed-upon specific steps and standards for evaluating its ongoing compliance with workers compensation insurance rating and reporting requirements;
– Submit to periodic internal and state monitoring and a confirmatory examination at the end of 24 months; and
– Agree to pay contingent potential fines if it fails to meet the terms of the compliance plan.
Why this is a big deal for workers compensation in Michigan
Michigan has a Second Injury Fund that was created to encourage business to hire a worker with an injury or disability. The Second Injury Fund is financed by insurance companies and self-insured employers. The amount that must be paid into the Second Injury Fund is based upon the proportionate amount of workers compensation premium they write.
When an insurance company does not fairly report its workers compensation premiums, it pays less into the workers compensation system at the expense of other insurers and self-insured employers. The integrity of the workers compensation system relies upon accurate reporting and adherence to the law.
Don’t let insurance companies play games with workers compensation
Decisions made by insurance companies are not always correct. Fight back if you find yourself in the position of having your workers compensation benefits denied.
To speak with one of our workers compensation lawyers, call (855) 221-2667 for a free consultation. There is no fee unless workers compensation benefits are recovered for you. We will fight to make sure that your legal rights are protected.
– Alex Berman is the founder of the law firm. Hes been representing injured and disabled workers exclusively for more than 30 years. Alex has helped countless people obtain workers compensation benefits and never charges a fee to evaluate a case.