American International Group Inc. (AIG) will be audited by New York State for allegedly improperly booking workers' compensation premiums. New York Attorney General Eliot Spitzer and the state Insurance Department are trying to determine whether AIG booked premiums for workers' compensation coverage as premiums for general liability coverage, which would allowed AIG to avoid paying its share into several workers' compensation funds. AIG has been cooperating with the investigation and has yet to release a statement.
See "N.Y. State to Probe A.I.G. Workers' Compensation Payments", The New York Times, April 25, 2005