AIG Unit to Pay $13.9 Million in New York Coverage Settlement

An American International Group Inc. unit agreed to pay $13.9 million to resolve claims that it issued insurance policies to schools, universities, and companies that didn’t meet minimum loss-ratio standards or provide coverage as advertised.

National Union Fire Insurance Company of Pittsburgh has issued blanket health and accident insurance policies for colleges and universities, day camps and child care providers, K-12 schools, and common carriers such as transportation companies across New York state. New York’s Department of Financial Services alleges the AIG subsidiary overcharged policyholder premiums by nearly $8.4 million from 2016 to 2021 and didn’t provide appropriate coverage for ...