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Member, Beacon International Group, Ltd.
CHICAGO—American International Group Inc. filed an amended complaint Friday in its ongoing battle with other insurers over alleged underreporting of workers compensation premiums.
The amended complaint filed in federal court in Chicago alleges that Liberty Mutual Group Inc., ACE INA Holdings Inc. and Hartford Financial Services Group Inc. violated the Racketeer Influenced and Corrupt Organizations Act, according to the complaint.
The group of insurers is locked in a court battle with AIG, with each side claiming the other underreported workers comp premiums for several years to avoid paying state residual market assessments, which are calculated as a percentage of an insurer’s premiums written in a state.
A federal judge earlier dismissed RICO allegations alleged by AIG but allowed other portions of the lawsuit to continue. On Friday, AIG presented additional information to reinstate the RICO allegations.
In a statement, AIG said its competitors “formed an illegal conspiracy to conceal” their underreporting and harm AIG.
The other insurers are alleging AIG’s underreporting harmed them, in addition to RICO violations.