AIG settles dispute with states over life-insurance payments American International Group Inc. will pay $300 million to settle a dispute with states over life-insurance payments that go unclaimed, according to California's finance office. In the agreement over unclaimed property, AIG will pay money owed on life-insurance claims, said Jacob Roper, a spokesman for the state controller's office. That payment will be divided among 39 states and the District of Columbia. California's share will be $25 million to $30 million, In a separate settlement announced Monday, AIG agreed to pay $11 million to insurance regulators. AIG joins a roster of insurance companies that have pledged to change the way they handle life-insurance claims. Last week, Nationwide Mutual Insurance Co. agreed to pay $7.2 million in a similar settlement with state insurance regulators. MetLife Inc. and Prudential Financial Inc. have made similar arrangements. A call to AIG spokesman Jim Ankner was not immediately returned.