Oregon fines AIG for insurance, comp violations

SALEM, Ore.--Oregon's Department of Consumer and Business Services said it fined American International Group Inc. $5 million for "numerous violations of Oregon insurance and workers compensation laws."

DCBS, however, suspended $4 million of the fine and will withdraw or impose it next year depending on whether the insurer meets certain conditions, the department said in a statement Thursday. Under an agreement, New York-based AIG has 45 days to pay the remaining $1 million.

Among other issues, DCBS alleged that AIG used policy forms that had not been approved, failed to make timely payment of medical benefits, and failed to accurately report premiums.

AIG said in a prepared statement that it is pleased to have reached an agreement with the DCBS and put the issues behind it. The insurer also said the agreement resulted from its continuing commitment to work closely with regulators.