AIG - Workers Compensation - The Bailout

Jon Lewis
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Posted by Jon LewisJanuary 08, 2009 1:24 PM

Well, I have just seen first hand what the bailout has done for AIG: made them even more heartless and cold than ever before. We represent a family who lives in Mexico. Their son was employed by a company in Atlanta, and he was killed on the job. The company is insured by AIG, and it is a clear liability case. What is AIG's response?

First, they made this man's parents travel across Mexico, obtain a special permit to enter our country, and come to Atlanta to give a deposition with a translator. They do not speak English. These individuals live in a two bedroom, aluminum house with 8 family members. We cannot imagine the life they live.

They cried at their deposition over the loss of their son. This was VERY emotional for them. They went back to Mexico, and the defense attorney and I discussed the possibiliity of settling the case.

I learned today that AIG is not interested in settling this case because they want to make it hard on this family. They know how difficult it is for them to travel back to this country, and they know it's difficult to get them back into this country. It's a foregone conclusion that the case will be won, but AIG doesn't care. They want to hold on to their money until the last possible date.

So, not only does AIG know the case is a loser from their standpoint, but they want to make it difficult on a very poor family in Mexico who just lost their son while he was working hard for AIG's insured. Furthermore, AIG knows that they have nothing to lose by doing this because the worst that can happen is they pay what they should pay anyway. The Judge cannot rule that they owe more than what the workers compensation statute says they owe so what do they care.

I ask you the following questions:

1. Is this right?
2. Is this humane?
3. Should AIG be punished for taking this stance?
4. Should AIG's insured have to endure further litigation because AIG wants to hold onto its money?
5. Should my client's family be made to suffer further?
6. Should they have to spend more money to come back to this country?
7. How should our system handle these situations?

The next time you hear about trial attorneys and tort reform, think about this case. It is insurance companies that drag out litigation and increase costs. It is insurance companies that turn down fair settlement offers and make their insured's go through the litigation process. It is insurance companies that make us take doctor depositions. AND, it is insurance companies that blame everything on the trial lawyers of America.

Isn't it time someone started holding these insurance companies accountable? AIG received billions of dollars of our tax money, and yet, this is how they treat human beings while they go to their spas and on their English hunting trips. It is time for these companies and the individuals operating them who have fleeced America to start paying the price.

14 Comments

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JIm
Posted by JIm
January 08, 2009 3:34 PM

This is absurd. Lawyers have ruined this country. I never met an attorney that I liked.

Jon Lewis
Posted by Jon Lewis
January 08, 2009 5:07 PM

What is absurd? How have lawyers ruined the country? It would be helpful if you would be more specific in your comments.

Darren Wilson
Posted by Darren Wilson
January 08, 2009 5:35 PM

Hi Jim,

Thanks for your interest in InjuryBoard, and for your comment here. I guess you must have had a bad experience with a lawyer in your life.

Although many people have had very good experiences with their attorneys, too many folks unfortunately feel the way you do. We at InjuryBoard are trying to change that negative perception because we believe it's an unfair portrayal of the profession as a whole.

I can tell you from my experiences with attorneys over the years that there are a lot of great lawyers out there, not just as competent attorneys, but also as people. I work with a bunch of them - approximately 500 of them right here at InjuryBoard alone. Here are their bios: More ...

I don't know if you really believe that lawyers "ruined this country," but historically I think it can be said that lawyers helped "build this country," and injury lawyers in particular have made the world a safer, fairer place.

Did you know that 35 of our nation's Founding Fathers were lawyers or had a legal education? Some of them were also judges. See
More ...

Every profession has a couple of bad apples. We've got a lot of good ones here at InjuryBoard.

Tim
Posted by Tim
January 08, 2009 7:47 PM

The letter above shows the lack of information folks have but yet speak out anyway (out of ignorance) - It is COMMON to investigate all Workers Compensation Claims - as well as dependents of the deceased employee - especially if they do not reside in the United States. Good grief - should a company just pay based on YOUR word? I think NOT. Now, to go further - there are CERTAIN state laws that the carrier has to follow as it pertains to ILLEGAL workers/ immigrants and the payouts the family may or may NOT be entitled to. Next time - get the facts - ALL THE FACTS - hearsay is just that - merely HEARSAY. Quit bad mouthing people or companies out of your ignorance of the FACTS.

Jack
Posted by Jack
January 09, 2009 1:49 AM

Boycott AIG and do not be fooled by their evil attempts to change the names of their companies to avoid consumer identification.

Steve Lombardi
Posted by Steve Lombardi
January 09, 2009 10:45 AM

What's predictable about this situation is that JIm and Tim (from the above comments) will some day be sitting in a lawyers' office arguing their case is somehow different and the lawyer should drop everything he/she does to make it right for them. Tort deformers are absolutely the worst cry-babies on the planet. When JIm needs an attorney all of a sudden he'll like them more than his mother and father. And Tim, will somehow find his case is clearly one in which the insurance company should pay up and pay up NOW!

Jon Lewis
Posted by Jon Lewis
January 09, 2009 11:15 AM

Dear Tim,

I have the facts. I've been involved in the case. They have done an investigation. If the deceased was illegal, why would the company illegally hire him? He had dependents which has been proven. The fact of the matter is that this was someone's son and a human who was killed.

I appreciate your thoughts though.

Jon Lewis
Posted by Jon Lewis
January 09, 2009 11:18 AM

Dear Steve,

I agree with you totally. It's always different when your ox is gored. We are always criticized until we're needed. If people only knew how difficult the system has become. When clients have to take time out of their day to go to physical therapy and live through an annoying pain, the value seems to climb ten fold.

Ed Priz
Posted by Ed Priz
January 09, 2009 8:04 PM

AIG has had a problematic reputation for decades. I remember back in the 1980's when I was working at a commercial insurance agency. The owner of the agency wouldn't let us place any business with AIG if it could be avoided, because, he felt, AIG would try to find a way to avoid paying legitimate claims and this would create difficulties for the agency in terms of our relationships with clients.

In the years since, I've read about AIG's settlement with New York authorities about their improper misrepresentation of Workers Comp premiums as some other line of insurance, to avoid their fair share of assessments. AIG paid $300 million to settle that, but now an insurance industry group, NCCI, has filed suit against AIG for a billion dollars in federal court, alleging that other insurance companies have been harmed by AIG's mis-reporting of Workers Comp premiums as other kinds of liability insurance.

For many years, Wall Street loved AIG because they always were so profitable. One now has to wonder just how those profits were generated, and I'm sure many former policyholders and claimants hate the thought of AIG being rescued with tax dollars. I think a lot of people who had to do business with AIG over the years might have preferred the Feds to bail out Lehman Bros. and let AIG sink, no matter what the consequences. AIG's business practices made few friends beyond Wall Street, I think, and those friends now seem to have deserted the company.

Jon Lewis
Posted by Jon Lewis
January 10, 2009 10:44 AM

I agree. It is frustrating to see our tax dollars go to companies which generate revenue through questionable means. It is also interesting to see the interest caused by this blog. AIG actually contacted a local attorney about this blog and had him contact me within two hours of its post.

RICHARD
Posted by RICHARD
February 04, 2009 2:13 PM

As we sit here and speak i am dealing with a claim for workers comp from A.I.G. and have had nothing but problems with them late payments - not returning fone calls -- well now ive been signed off with doctor and given 5% rating due to knee injury-- that was caused by another employee not puttin wet floor sign down --- i wait with anticipation to see what they do - i can no longer work in the restaurant business- KNOWING A.I.G. THEY'LL SHAFT ME they got thier payout -- where is mine---MAN UP DAMMIT!!!!

Jon Lewis
Posted by Jon Lewis
February 04, 2009 4:20 PM

Richard, thank you for your comments. I'm sorry to hear about your problems with AIG. Maybe you should contact an attorney in your State to assist you if AIG doesn't respond appropriately.

Martin
Posted by Martin
February 13, 2009 11:38 AM

Iam also going through a workmans comp claim.It seems that the longer they can ignore you and your attorney, the better it is for them. Weekely payments take for ever to get to me, if they come at all.The doctors recomend I see another doctor, But AIG dosent seem to ever get that paper work? No matter how many times the doctor send the files.The case worker Never seems to contact the right person. Unless it is to benifit Aig.I have never worked with or worked for any person or business that think all you want is to steal there money, no matter how truthful you are with them!

Jon Lewis
Posted by Jon Lewis
February 13, 2009 11:53 AM

It is sad that people such as yourself get treated this way. All you are trying to do is get well so you can go back to work, but their attitude is that you are trying to get something for nothing. It is all a bottom line analysis for them. The human element never seems to enter the picture. If we can assist you, please do not hesitate to let us know.

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