AIG antes up $1m to Conn.

Connecticut has received just over $1 million in fines and penalties from American International Group Inc., as part of a multi-state settlement over allegations that the company underreported its premiums of workers compensation insurance.

A multi-state examination that began in 2008 determined that AIG underreported more than $2 billion in workers”™ compensation premiums. Instead, the company attributed the workers comp premiums to other insurance lines of business, reducing its taxes and assessments.

AIG agreed to pay $100 million in fines and $46.5 million in premium taxes and assessments.  All 50 states participated in the settlement.