AIG faces a probe from another regulatory body after the Florida Office of Insurance Regulation demanded answers from AIG over its financial statement misrepresentations.

The financial community was rocked by the Securities and Exchange Commission (SEC) investigations leading to admissions by AIG that certain reinsurance transactions were misrepresented.

AIG's admissions appear to indicate violations of both federal and state laws and it currently operates 43 licensed insurance entities in the State of Florida.

To comply with the Florida Office's order, AIG must report the full nature and extent of these misrepresentations and identify and remove any parties culpable.

The order also requires AIG to file, by 1 July true and correct financial statements for the yearsf 2000 to 2005 for all AIG entities licensed in Florida.

Failure to comply with the order may lead to the suspension of AIG's licensed companies in Florida.

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