California Insurance Commissioner Steve Poizner and Washington Commissioner Mike Kreidler reaffirmed that insurance companies owned by AIG continue to have the risk-based capital needed to operateand warned policyholders of AIG-owned insurance companies to beware of possible cancellation costs if they are approached about switching insurance companies.
“Don’t worry and don’t make any rash decisions if you have a policy issued by an AIG insurance company,” Kreidler said. “All of AIG’s insurance companies are strong and solvent.”
“While I encourage consumers to shop around when their insurance policies come up for renewal, they should be wary of incurring fees if they switch in the middle of a policy,” said Commissioner Poizner. “My department is carefully monitoring the situation and all of AIG’s insurance companies continue to meet the requirements to operate in the state.
“If you have a life insurance or annuity policy and someone tells you to replace it because of the troubles at AIG’s parent company and you have additional questions, you should call the 800-927-HELP. Replacing or liquidating a life insurance policy or an annuity can have heavy hidden costs and tax consequences. Also, there may be a cancellation penalty if you cancel your automobile or homeowners policy.”
As Commissioner Poizner said earlier this month, AIG’s financial difficulties stem from the parent company and other non-insurance affiliates, not its subsidiary insurance companies. The AIG-affiliated insurance companies remain solid.
Source: CDI, OIC