NCCI's Action Against AIG Tossed by Illinois Federal Judge

CHICAGO - An Illinois federal judge has ruled that the National Council on Compensation Insurance Inc. does not have standing to sue American International Group Inc. for injuries suffered by members of a workers' compensation reinsurance pool due to AIG's alleged underreporting of workers' compensation premiums. National Council on Compensation Insurance Inc. v. American International Group Inc., No. 07-2898 (N.D. Ill.).

On Aug. 20, Judge Robert W. Gettleman of the U.S. District Court for the Northern District of Illinois explained that the rights of the pool members were never transferred to NCCI, therefore the pool manager cannot act as "attorney-in-fact."