Commissioners Warn AIG Policyholders To Be Cautious

September 30, 2008

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