Accusations Fly Between AIG, Liberty Mutual in Workers' Comp Battle

CHICAGO - Liberty Mutual Insurance Co. and its related entities have filed third-party counterclaims against American International Group Inc. in response to AIG's accusations that they underreported workers' compensation premium in order to avoid assessments by the National Council on Compensation Insurance Inc. National Council on Compensation Insurance Inc. v. American International Group Inc., No. 07-2898 (N.D. Ill.).

In their April 16 answer and counterclaims, the Liberty parties deny AIG's claims that they conspired to "exploit for their own collective economic and competitive advantage" the regulatory inquiry into AIG's business practices. The counterclaims accuse AIG of covering up its alleged …