Mass. AG Wins Added $218K from Big Dig Insurer

Massachusetts Attorney General Martha Coakley’s Office recently recovered an additional $218,920 from American International Group (AIG) for the Central Artery Tunnel (CA/T) Project.

The payment, which was made in June, is part of an ongoing reconciliation of premiums and residual market payouts stemming from the insurer’s settlement of Big Dig workers' compensation insurance premium issues with the Attorney General’s Office. AIG serves as the workers’ comp carrier for the Central Artery Tunnel (CA/T) Project.

A review by the Attorney General’s Office last year found that the company reportedly failed to pay certain surplus funds to the Commonwealth as required under its contract. The additional payment stems from further review by the Attorney General’s Office after a May 2007 settlement in which AIG agreed to pay $58.5 million to the Commonwealth, which included $26 million owed to the Big Dig plus other compensation and $40,000 in attorney fees and costs.

As part of the ongoing reconciliation of premiums and residual market payouts and after discussions with staff at the Attorney General’s Office, AIG this year is making an additional $200,000 payment to the CAT Project.