The rescue of American International Group by the Federal Reserve's lending money to that holding company should not disrupt the business between customers and AIG insurance subsidiaries operati
The Lincoln Journal Star | Posted: Tuesday, September 16, 2008 7:00 pm
The rescue of American International Group by the Federal Reserve’s lending money to that holding company should not disrupt the business between customers and AIG insurance subsidiaries operating in each state, according to the Independent Insurance Agents & Brokers of America and the National Association of Insurance Commissioners, an organization of state regulators.
AIG said the insurance company businesses “continue to operate normally and remain adequately capitalized and fully capable of meeting their obligations to policyholders.”
“We have a very strong message for consumers: If you have a policy with an AIG insurance company, they are solvent and have the capability to pay claims,” said NAIC President Sandy Praeger, the insurance commissioner for Kansas. “Our job is to ensure that they continue to have the ability to pay.”
As a holding company, AIG is a separate, federally regulated legal entity that is distinct and apart from its subsidiary insurers, NAIC said. The subsidiary insurers are governed by state laws, which NAIC says are designed to protect the interest of policyholders.
No records show the value of insurance coverage AIG has in force in Nebraska, according to the Nebraska Department of Insurance. But here are the total of premiums Nebraskans paid to AIG during the first six months of the year: Life insurance, $8.8 million; annuities, $18.6 million; accident and health, $1.4 million; general property and casualty insurance, $59.9 million.