Settlement with AIG subsidiary to bring Minnesota more than $800K


Minnesota will collect about $828,000 from a subsidiary of insurance giant AIG as part of a settlement in a false advertising case. Regulators say National Union Fire Insurance Co. sold group policies to individual consumers and misrepresented the product.

Commerce Commissioner Mike Rothman said in a statement that regulators have taken action against a range of insurance companies for misleading consumers. The case against the AIG subsidiary dates back more than two years.

Forty-one states have now joined the case but it started when Minnesota regulators joined their counterparts in Ohio. The Buckeye state stands to claim $1.3 million in the settlement.

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