In what Florida Insurance Commissioner Kevin McCarty deemed "truly a victory for Florida's consumers and businesses," AIG Insurance Company (AIG) settled charges that it failed to justify rates or used excessive and unfairly discriminatory rates on coverage required by the federal Terrorism Risk Insurance Act.

Under the consent order, AIG must refund or credit approximately $13.6 million in workers' compensation, and approximately $100,000 in non-workers' compensation lines – plus interest – to policyholders in Florida.AIG also will be required to pay $300,000 to the Florida Office of Insurance Regulation for costs and fees related to the late-September settlement.

"Regardless of whether it is a small carrier or an industry giant like AIG, we will remain vigilant to assure that Floridians are not charged improper insurance rates," McCarty said.