claim policies as straight forward and fair.

Maurice (Hank) Greenberg has taken the unusual step of refuting information a Wall Street Journal story article which was carried by The Royal Gazette on Monday.

The article pointed out problems certain policyholders faced when they sought insurance payments they expected from AIG companies. The article talked of "a growing fierceness on the part of insurers'' in general in fighting claims.

The article reported that AIG counted about 550 cases of the 400,000 pending claims in which negligent or unfair claims handling is alleged, which Mr.

Greenberg pointed out represented only about a tenth of one percent.

But he said the article consisted of "a complete misrepresentation and distortion of AIG's claims practices''.

He continued: "The writer of this article has engaged in what I can only call malicious writing, not responsible reporting. She developed the thesis of her article from material presumably given her by plaintiffs' attorneys or others with questionable motives.'' The article contended that insurers are spending at least $1 billion a year on legal battles, as they prefer to fight, rather than pay some claims. And AIG was singled out as the personification of the "no-holds-barred approach''.

AIG is the biggest seller of commercial and industrial coverages with $134 billion in assets. And it does settle claims -- to the tune of a cool $4.6 billion in the US alone last year.

In a letter Mr. Greenberg issued from his New York office, he criticised the author, claiming that senior AIG executives spent many hours with her, reviewing individual cases she mentioned, and explaining why the company took certain positions.

He complained that she opted to listen to distortions fed her by lawyers with vested interests in opposing AIG in claims disputes, and that she deliberately omitted key facts from the article.

Mr. Greenberg saidL "It is our policy to pay every valid claim as promptly as possible and to resist every claim that is not valid.'' He accused the author of misinterpreting a few complex cases that involved difficult coverage issues which had to be resolved.

In commenting on the litigious nature of the US, the AIG boss stated: "For years AIG, the insurance industry and other leaders of corporate America have been calling for meaningful tort reform that would remove from our courts the huge volume of questionable and specious lawsuits that cost our economy millions, if not billions of dollars annually.'' He said trial attorneys are the chief beneficiaries while policyholders tend to bear the cost of the system.

Maurice Greenberg BUSINESS BUC