In a recent statement, California’s Insurance Commissioner declared that AIG owes its reinsurers over 500 million dollars in light of the Ninth Circuit ruling where it confirmed the reinsurers’ position that AGI did not disclose important information needed to provide a reasonable basis to set reserves for claim payments that involved workers’ compensation. Given that many of the insurers went bankrupt, it is expected that California might receive some of the proceeds to offset its involvement in the payment of claims