Office Of Insurance Regulation Issues AIG Companies Consent Order
Contact: Beth Scott
Tallahassee - The Florida Office of Insurance Regulation has issued a Consent Order requiring 10 AIG Companies to transmit financial data required by statute, to pay administrative fines and costs of more than half a million dollars and to fully comply with Florida Statutes.
AIU Insurance Company; American Home Assurance Company; American International South Insurance Company; Birmingham Fire Insurance Company of Pennsylvania; Commerce and Industry Insurance Company; Granite State Insurance Company; Illinois National Insurance Co.; The Insurance Company of the State of Pennsylvania; National Union Fire Insurance of Pittsburgh, Pa.; and New Hampshire Insurance Company have agreed to pay administrative fines of $500,000 and administrative costs of $5,000 within 30 days following execution of the Consent Order.
The companies failed to transmit information required by statute and requested by the National Council on Compensation Insurance, Inc. (NCCI). Financial calls from 1999 through 2002 showed out of balance discrepancies and a $50 million difference in premiums reported on the statewide calls and the reconciliation report. Also, NCCI was unable to use information from the companies' financial call data in its 2005 rate filings because of late filing and data quality issues.
The companies are required to transmit all information requested by NCCI and required by Florida Statute requested by NCCI in November or be subject to additional fines and penalties accruing at $50,000 per month.