A California insurance broker is suing American International Group, accusing the nation’s largest insurance and financial corporation of engaging in unfair business practices.
Insurance broker Linda Harris, president of the Independent Financial Planning Group, filed the lawsuit in Los Angeles Superior Court.
The lawsuit accuses AIG of using funds from its California insurance companies to support its financial services business and telling brokers and policy holders that the insurance business in insulated from its losses in the financial derivatives market.
Harris’ attorney says such practices put policyholders at risk of losing their savings. Harris and her company bought and sold more than $15 million of AIG life insurance.
A message was left with an AIG spokeswoman that was not returned by press time.