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AIG consumer FAQs
 
I have an insurance policy with AIG. How does this impact me?

AIG is an international financial holding company with businesses ranging from aircraft leasing through investment services through insurance. The policy you hold is written by an insurance company that is an operating subsidiary of AIG. Those insurance companies are financially sound. State insurance regulators and federal regulators, in cooperation with the new management of AIG, are taking steps to make sure that insurance customers of AIG subsidiaries are protected. 

Will the AIG insurance companies be able to pay claims?

In short, yes. The AIG affiliated insurance companies are financially solvent and able to pay claims. The financial issues facing AIG are occurring because of investments in risky mortgage-backed securities by the parent company. The Federal Reserve is basically extending a line of credit to the parent company to help it work through these issues. 

What are state regulators doing to make sure AIG insurance companies can continue to pay claims?

State insurance regulators are closely monitoring the financial condition of the AIG affiliated insurance companies and are reviewing any activity at the parent company that impacts insurance company assets. Any significant transaction impacting an AIG insurance company, including sale of the company, is subject to state regulator approval. 

What happens if AIG affiliated insurance companies get into financial trouble?

State regulators have a variety of tools available if it appears that an insurer is not going to be able to fulfill its promises to policyholders. The North Dakota Insurance Department can take over management of an insurer through conservation or rehabilitation. Even if liquidation of an insurance company is necessary, policyholder claims will generally be paid either by the insurance company or by a guaranty fund, which all states have in place to provide coverage to policyholders.

Is AIG going bankrupt? I have an insurance policy with AIG. How does this impact me?

AIG is an international financial holding company with businesses ranging from aircraft leasing through investment services through insurance. The policy you hold is written by an insurance company that is an operating subsidiary of AIG. Those insurance companies are financially sound. State insurance regulators and federal regulators, in cooperation with the new management of AIG, are taking steps to make sure that insurance customers of AIG subsidiaries are protected.

Are the insurance and annuity policies I purchased from AIG safe or am I going to lose my money?

Your policies are safe. AIG's insurance companies are financially strong and fully able to honor all policyholders' claims. The North Dakota Insurance Department will continue to closely monitor the situation to ensure policyholders are protected and that there will continue to be sufficient assets to pay claims.

I own an AIG American General fixed annuity. Is that protected by state insurance solvency standards in the same way that insurance policies are?

Yes. Fixed annuities are considered a type of life insurance, and as such are protected by the same solvency and guaranty framework as traditional life insurance. If at some point in the future AIG insurance companies or their assets and blocks of business are sold, fixed annuity-holders should experience no changes to the way their policies are administered--other than the fact that their correspondence may come from a different company. This is not unique to AIG; insurance companies are bought and sold everyday. Your benefits as defined in the original annuity contract remain the same in a sale.

Should I cash in my insurance and annuity policies and purchase insurance from another insurer?

As stated above, the AIG insurance companies are financially strong so your policies are not in jeopardy. Whether you should cash in your insurance policy or switch insurance to another insurer is, as always, a personal decision. Please be aware that some policies may contain surrender charges and/or cancellation penalties. Contact the North Dakota Insurance Department to find out all the information your agent or broker should give you before you make a decision. Talk to your financial adviser before making any decisions. If you have any insurance policy with an AIG company and someone tells you to replace it because of the troubles at AIG's parent company or supposed trouble at the insurance company, call the North Dakota Insurance Department at 1-800-247-0560.

Should I pay the insurance premium bill that I just received from AIG?

Yes, in order for your coverage with AIG to continue, you will need to pay the insurance premiums. Failure to pay your premiums can result in the termination of your insurance policies by the insurance company. 

Would my insurance and annuity policies have been protected had AIG been declared insolvent and ordered to be liquidated by a court?

There are guaranty funds in place in all states which act as a safety net in the event an insurer becomes insolvent. You may obtain information about your state's guaranty funds by contacting the North Dakota Insurance Department.

How can I check on the financial status of a specific AIG insurance subsidiary?
You can search for each individual AIG subsidiary in NAIC's Consumer Information Source (CIS). Here you will find financial information specific to the company as well as complaint data and licensing information.

Who do I call if I have questions about my AIG policy?

Contact the North Dakota Insurance Department at 1-800-247-0560.

What can I do if I am having difficulty getting through to AIG on the telephone?

You may obtain information about filing a complaint through the North Dakota Insurance Department or through the Consumer Information Source (CIS)

North Dakota Insurance Department
600 E. Boulevard Ave.
Bismarck, ND 58505-0320
Phone 701.328.2440
Toll free 800.247.0560
Fax 701.328.4880

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