Liberty Mutual weighs actions after preliminary approval of AIG settlement
AIG indicated last month that a federal judge had given preliminary approval to a $450 million settlement with companies that alleged the financial giant underreported workers' comp premiums for many years.
AIG proposed the amount to settle a lawsuit by other insurance companies that alleged it unfairly paid a smaller share of various state insurance pools. Two of Liberty Mutual's subsidiaries sued in 2009 on behalf of other companies.
Liberty Mutual has maintained the settlement is inadequate because it is based on an amount far below the actual extent of AIG's underreporting. A company spokesman said Liberty Mutual would await the judge's written decision before determining its next move. For example, the insurer could appeal the decision or opt out of its $99 million share of the settlement.
AIG has called the decision a victory and said it is optimistic the proposed settlement will soon receive final approval.
Read more at the WorkersComp Forum homepage.
August 4, 2011
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