Hamm advises consumers to be careful with replacement policies Posted on 9/30/2008
BISMARCK, N.D.-North Dakota Insurance Commissioner Adam Hamm today advised consumers with AIG insurance policies to be careful if approached to purchase replacement policies.
"AIG's insurance companies are financially sound and are able to pay claims," Hamm said. "If someone tries to sell you a replacement policy claiming that an AIG insurance company is in financial trouble, please call the Insurance Department before you make a decision."
The company's problems deal with AIG's holding company, not the individual company subsidiaries with which consumers do business. AIG's holding company is a separate, federally-regulated legal entity that is separate and distinct from its subsidiary insurers.
Hamm said replacing a life insurance policy or an annuity can have hidden costs and tax consequences. Other types of policies sometimes have cancellation penalties.
Contact the North Dakota Insurance Department at 1-800-247-0560 or insurance@nd.gov.
