AIG sues NY regulator over licensing issue
April 7, 2014 by Arthur D. Postal
American International Group and the state of New York are on a collision course over the authority of the state to levy taxes on an insurer because it is conducting sales activities in the state but not insuring the risks involved in the products being marketed through its New York businesses.
In a lawsuit filed in federal District Court in Manhattan Thursday, AIG acknowledges that New York has the authority to regulate the business of insurance issued to insureds resident in New York, but it does not have authority to regulate the business of insurance issued to foreign insureds resident outside of the state.
The two former AIG subsidiaries at the heart of the dispute are American Life Insurance Company (ALICO) and Delaware American Life Insurance Company (DelAm).
