State Recovers Big Dig Cash

The State of Massachusetts has reached a settlement with one of the insurers for the big dig.

Attorney General Martha Coakley says the insurance carrier American International Group or AIG, has agreed to pay more than $58 million to the state. The Attorney General found the insurer failed to pass along surplus payments to the state, which was required under its contract.

AIG was the worker's compensation insurer for the entire $15 billion big dig.

Today's announcement is the state's first cost recovery from a business involved in the big dig under Coakley.

Former Attorney General Thomas Reilly had proposed seeking to recover $108 million from big dig contractors for management and construction errors, but that effort stalled after Reilly took criticism for seeking too low an amount.