Posted On: April 23, 2009, 6:06 pm CDT

Posted By: insguy

Donn McVeigh, who is a pretty smart insurance guy, points to the real question. What did the policy language say? If it said, as the article implies, that coverage would be increased "by" 110 or 120% then AIG erred in its policy wording and the payments are justifiable according to the policy. This, of course, does not ti say the payments are justifiable in terms of the actual cost of loss to the policy holder. It would make a lot of sense for every insurance company to go back and check their wording. If they meant to say increased "to" 110 or 120% they should have said so. Where were their policy language attorneys? "I know you think you understand what you thought I said but are you sure that what I said was what I meant!"