American International Group Inc. (AIG) agreed yesterday to pay Pennsylvania $9.1 million to settle allegations regarding bid-rigging and client steering.  The agreement settles Pennsylvania Insurance Commissioner, Joel Ario's investigation into AIG's financial reporting concerning its alleged reinsurance deal.

In February, a former AIG executive and four former Gen Re executives were found guilty for their part in a transaction related to the financial misreporting that is the basis of the insurance commissioner's investigation.

The settlement requires AIG to provide annual reinsurance reports and extensive commission disclosure.  AIG has already paid $4.4 million to the state.

More information can be found in the upcoming March issue of Mealey's Insurance Broker Liability.