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AIG Wins NWCRP Case

After having been accused by competitors of shortchanging state workers' compensation pools for over three decades

AIG, the New York-based insurer accused by National Council for underpaying National Workers Compensation Reinsurance Pool (NWCRP), has won dismissal of a lawsuit that sought to recover approximately $1 billion – reported Bloomberg.

Robert Gettleman, a Judge in Chicago has said that the suit lacked standing to sue AIG on behalf of insurers in its state workers’ compensation pools. Citing a 2008 Supreme Court ruling involving Sprint Nextel, the judge said that the council did not seek damages on behalf of its members and had not sought to prove that it had been harmed by AIG, reported the Daily Mail.

In the decision, Mr. Gettleman, wrote: Merely assigning a case to an attorney to prosecute the claim does not confer standing on the attorney. While it may be possible to plead and prove a claim that NCCI and the pool suffered harm as a consequence of AIG’s underreporting, that is not the claim presently before the court.