Insurance probe.THE FBI met last week with state insurance regulators as it probes whether accounting improprieties such as those revealed by American International Group
American International Group, Inc. (AIG) (NYSE: AIG; TYO: 8685 ) is a major American insurance corporation based in New York City. Inc. are pervasive in the industry. The FBI, which is conducting a broad investigation into insurance fraud, convened in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of with regulators including the New York Insurance Department and the National Association of Insurance Commissioners The National Association of Insurance Commissioners (NAIC) is an Internal Revenue Code Section 501(c)(3) non-profit organization which seeks to organize the regulatory and supervisory efforts of the various state insurance commissioners from around the United States. , spokesmen for the regulators said. The meeting underscores the increased scrutiny of the industry as AIG AIG addressee indicator group (US DoD) AIG American International Group, Inc AiG Answers in Genesis (religious group in defense of Scripture) AIG Artificial Intelligence Group AIG Australian Industry Group , the world's largest insurer, moves to correct improper accounting that overstated o·ver·state tr.v. o·ver·stat·ed, o·ver·stat·ing, o·ver·states To state in exaggerated terms. See Synonyms at exaggerate. o its net worth by $2.7 billion. At least 13 insurers have received subpoenas from New York Attorney General Eliot Spitzer and the Securities and Exchange Commission about non-traditional reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. that may be abused to hide losses. "We understand the FBI is seeking to determine whether the accounting practices recently identified represent an industrywide concern," Diane Koken, president of the National Association of Insurance Commissioners, said in a statement. The group unites individual state superintendents who have oversight of the industry. There is no federal regulator. AIG will correct five years of results for errors in reinsurance and other transactions. Chris Swecker, head of the FBI's criminal divisions, said the Justice Department was "engaged" with Spitzer and the SEC in investigating AIG. "Our agents in New York are sort of standing by," Swecker said in regard to AIG. "So we wouldn't classify that as a full-blown investigation, on our part." The FBI's industrywide investigation will pursue fraud in reinsurance and other areas, Swecker said. AIG spokesman Chris Winans declined to comment on the investigation last week after it was announced. Scott Holeman, a spokesman for the National Association of Insurance Commissioners, and Michael Barry, a spokesman for the New York Insurance Department, declined to comment on last week's meeting beyond confirming that representatives of their organizations were attending. Jim Margolin, a spokesman for FBI field office in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , said he couldn't comment. |
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