AIG Unit to Pay $760,000 to Resolve Dispute Over Policies Sold in Massachusetts

BOSTON—A subsidiary of American International Group (AIG) has agreed to pay $760,000 in restitution and penalties to resolve allegations that it sold health insurance policies in Massachusetts that did not cover benefits mandated by state law, Attorney General Martha Coakley (D) announced April 25 (Massachusetts v. United States Life Insurance Co.).

The United States Life Insurance Co., New York, will set aside $500,000 to refund premiums and pay claims to consumers for mandated services and pay $260,000 to the state, Coakley said.

“As the agreement with Massachusetts makes clear, we do not admit liability or wrongdoing in this ...