02:37 PM EDT, 03/19/2024 (MT Newswires) -- American International Group ( AIG ) unit National Union Fire Insurance Company of Pittsburgh agreed to pay close to $14 million to settle allegations that it issued inadequate insurance policies to schools, universities and companies.

"NUFIC's failure to address significant issues with these policies caused schools and childcare organizations to overpay for insurance," New York Superintendent of Financial Services Adrienne Harris said in a statement.

The insurance company agreed to provide retroactive rebates to affected groups within 90 days that reflect about $8.4 million minimum loss ratio performance shortfall, according to the settlement.

Additionally, NUFIC agreed to pay a civil penalty of $5.6 million to New York State Department of Financial Services within seven days.

American International Group ( AIG ) declined MT Newswires' request for comment.

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