Claims News Service, Mar. 06, 10:24 a.m. EST -- MichiganAttorney General Mike Cox announced recently that AmericanInternational Group and its subsidiaries have paid more than $5.2million to the state, representing the underpayment, with interest,of workers' compensation premium taxes and related fees andassessments for the tax years 1985 to 1996.


In addition, AIG has paid $301.2 million into a fund to settleclaims with respect to its underpayment of workers' compensationresidual market assessments for tax years 1985 to 1996. The amounthas been apportioned to each state, including interest. Accordingto a March 1, 2006 letter to Attorney General Mike Cox, AIG statesthat Michigan will be entitled to receive an additional $2,620,873from this separate fund. According to the attorney general'soffice, states have one year to accept the settlement amount orpursue their own settlements with AIG.


The $5,279,484.00 paid to the Michigan Department of Treasury byAIG is part of a $1.6 billion settlement for fraud and improperaccounting that AIG entered into with the New York State InsuranceDepartment, the New York Attorney General, the Securities andExchange Commission, and the United States Department ofJustice.

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