A Pittsburgh-based insurance company will have to pay regulators in Ohio and other states as part of a multimillion-dollar settlement.

The National Union Fire Insurance Company, an AIG group affiliate and subsidiary of Chartis, Inc., will pay a $39 million fine to state insurance regulators that include the Ohio Department of Insurance as part of an agreement reached following a multistate examination into the company’s business practices, according to Lt. Gov. Mary Taylor, who also is the state’s Department of Insurance director.

Ohio’s share is expected to be about $1.3 million, plus a $100,000 fee for serving as a lead state regulator, according to Taylor’s office.

The examination was launched after red flags were raised during an initial examination by the state DOI. Ohio and other lead states identified problems with several aspects of the company’s business practices, including product development; rates and form filings; licensing of agents and claims personnel; and record retention.

“Because of our initial exam and continued efforts throughout this entire process, we have helped reach a strong settlement for consumers across the country,” Taylor said in a statement. “Our review found the company’s practices were severely compromising consumer protection. Some steps have already been taken, but this agreement will ensure the company continues to make much needed reforms moving forward.”

The agreement stipulates that NUFIC will be monitored by state regulators for two years, according to the release.