AIG, an insurer bailed out by the US, now claims that other workers' compensation carriers entered into a conspiracy against them by underreporting their premiums. In an amended complaint filed last week in the Federal Court in Chicago (USDCT N.D. Ill.), AIG alleged that Liberty Mutual and Hartford/ACE entered into a conspiracy to underreport their premiums.
Premium calculations determine contributions to State compensation funds that cover State operated programs for employers unable to secure coverage in the open market. These include high risk employers.
National Workers Compensation Reinsurance Pool v. American International Group Inc., 1:07C-2898, U.S. District Court, Northern District of Illinois
