Contested $443m bill rises to $517m with interest
California insurance commissioner Steve Poizner has said AIG’s life unit must pay reinsurance of more than $517m to workers’ compensation insurers in liquidation, Bloomberg reports.
A federal court entered a judgment of $443m against the firm in 2007 when it challenged the arbitration award. The judgment now totals more than $517m with interest included, according to Poizner.
Case dismissed?
In a separate story Bloomberg said former AIG chief financial officer Howard Smith has asked a New York judge to dismiss a lawsuit brought in 2005 by former state Attorney General Eliot Spitzer.
Smith and former chief executive officer Maurice “Hank” Greenberg were sued by Spitzer’s office in 2005 in New York State Supreme Court in Manhattan. Spitzer them of using sham reinsurance deals involving Gen Re to distort the reported financial condition of the company.
