MO Public Schools Get 1 Million in AIG Lawsuit

A bit of good news for MO Public schools comes as they receive a million dollars in a class action lawsuit with AIG. Public schools in Missouri have received more than $1 million as a result of a settlement between the Missouri Department of Insurance and AIG. In 2008, every state insurance department in the country began a joint investigation of AIG for violations of insurance laws. The investigation, known as a market conduct exam, focused on allegations that AIG, under previous leadership, underreported its workers’ compensation insurance revenues by more than $2 billion. Workers’ compensation premiums are taxed at a higher rate than auto, liability and other types of insurance. As a result of the nationwide settlement, AIG will pay a total of $146 million to the states, including just over $1 million to Missouri. States will continue to monitor AIG, and the company could face up to $150 million in additional fines if it fails to comply in the future.