The fallout from New York's insurance scandals continues for American International Group with a federal lawsuit filed by two Minnesota workers' compensation programs seeking as much as $150 million in damages from the carrier.
Their action alleged the insurer was guilty of civil violations under the Racketeer Influenced and Corrupt Organizations Act, under which the plaintiff can collect three times the alleged damage.
The suit by the Workers' Compensation Reinsurance Association (WCRA) and Minnesota Workers' Compensation Insurers Association Inc. (MWCIA), both in St. Paul, Minn., accused AIG of submitting false and fraudulent data in order to avoid paying the proper premium over a 22-year period.
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