AIG Subpoenas Other WC Carriers

Insurer AIG (or whatever they're calling themselves currently) has now issued subpoenas against other major Workers Compensation carriers, to determine if they were guilty of the same kind of abuses they say AIG engaged in for years.

Some background: a year or two ago, the NCCI (National Council on Compensation Insurance) filed suit against AIG in federal court for a billion dollars, alleging that AIG had dodged out of paying the assessments and fees that are part of the Workers Compensation system. NCCI charged that the other member insurance companies that make up NCCI therefore had to pick up the slack, to the tune of that aforementioned billion dollars.

That suit eventually got tossed out because the judge ruled that NCCI lacked standing--so several of those other insurance companies filed their own suits over the same issue. AIG has always contended that what they did was common practice at other insurance companies. And now AIG has been granted the right by the court to subpoena the records of those other insurance companies to see if this was really so.

Should be interesting to see what dirty laundry (if any) AIG finds at its competitors.