Comments on: What will happen to my life insurance policy if AIG goes down?

By: Michael M

Michael M — Sun, 14 Mar 2010 20:06:03 +0000

The credit issues mainly center around their parent company. Most of their subsidiaries have plenty of assets and would get sold to other companies to raise capital should something worse happen. This includes companies like American General Life. Would I go and purchase a new policy from them right now? Probably not. Would I worry about my current policy if I had one? No.

If you are uncomfortable then you can look start looking at another similar policy from another company but don’t drop your current coverage until you have your new policy paid and in force. You don’t want to risk a break in coverage.

By: mama_sayed

mama_sayed — Sun, 14 Mar 2010 20:06:03 +0000

All insurance companies are required by law to have huge amounts of funds just for paying on insurance claims, those funds cannot be used for anything else. The people who will lose out in AIG problems, if anyone, will be the big banks who loaned them money and their stockholders

By: girlxstereotype

girlxstereotype — Sun, 14 Mar 2010 20:06:03 +0000

“We have a very strong message for consumers,” said David Neustadt, the deputy superintendent for public information for the State Insurance Department in New York, where A.I.G. has its headquarters. “If you have a policy with A.I.G. insurance company, they are financially strong and solvent. They have the capability to pay on any claims, and our job is to ensure that they continue to have the ability to pay.”

In the event of insolvency, entities known as guaranty funds would step in. Each state has at least two of these, one dealing with claims against defunct life and health insurance companies and the other handling property and casualty claims, as well as workers’ compensation. They’re a bit like the FDIC, which provides protection to account holders when banks fail.