AIG Gets Subpoenas From Spitzer, SEC Monday February 14, 8:04 am ET AIG Gets Subpoenas From Spitzer, SEC Over Reinsurance, 'Nontraditional' Insurance Products
NEW YORK (AP) -- The insurance giant American International Group Inc. said Monday it has received subpoenas from New York Attorney General Eliot Spitzer and Securities and Exchange Commission related to "nontraditional" insurance products and "certain assumed reinsurance transactions." ADVERTISEMENT
The company said it will "cooperate in responding to the subpoenas."
Spitzer has previously accused the insurance industry of bid-rigging, and has focused on contingent commissions, which are fees paid to brokers over and above regular commissions by insurance companies in exchange for getting more business. AIG has agreed to discontinue the fees.
In Monday's statement, AIG said that it received subpoenas last Wednesday "relating to investigations of nontraditional insurance products and certain assumed reinsurance transactions and AIG's accounting for such