American International Group Inc. has agreed to pay New York state $35 million to settle claims that two former subsidiaries of the insurance giant solicited business without a license and misled regulators about their operations in the state.
The state Department of Financial Services announced the settlement Friday. The deal comes after the state reached a $60 million settlement in March with MetLife, which purchased the two subsidiaries from AIG.
Continue Reading Below
Authorities had alleged that the subsidiaries — American Life Insurance Co. and Delaware American Life Insurance Co. — sought customers in New York without necessary licenses and made misstatements about their activities to regulators.
Under the settlement, AIG will drop a federal legal challenge to the state's probe and the state will not proceed with charges or a lawsuit.