PRC Insurance Division Nabs Millions for New Mexico in AIG Settlement
SANTA FE, NM (WorkersCompensation.com) —The Public Regulation Commission’s Insurance Division is set to net New Mexico nearly $9 million from a large cash settlement paid by American Insurance Group (AIG) to all 50 states for misreporting billions in workers’ compensation premiums for more than a decade.
In 2010, AIG agreed to pay back $146.5 million after the National Association of Insurance Commissioners (NAIC) found it under-reported more than $20 billion in premiums over a 15 year period.
State Superintendent of Insurance John G. Franchini said New Mexico received an initial $866,000 from AIG in fines and penalties which was put into the state’s general fund and will receive an additional $8 million from the mega-insurer later this year that is earmarked for the state’s Assigned Risk Pool.
“I’m extremely pleased about the outcome for New Mexico,” Franchini said. “We worked diligently with the NAIC and other states and agencies to make this happen.”
Questions about workers’ compensation policies in New Mexico can be directed to the PRC’s Insurance Division at 1-888-4ASKPRC.