AIG Auto Insurance Subsidiaries Are Solvent
KANSAS CITY, MO — National Association of Insurance Commissioners (NAIC) President Sandy Praeger yesterday sought to reassure customers of AIG subsidiaries, some of which offer business fleet insurance, that their coverage is intact.
"As always, the primary concern of state regulators is the continuing ability of insurance companies to meet consumer expectations and pay claims," Praeger said. "The 71 state-regulated insurance companies within AIG did not receive a bailout; they are financially solvent. The federal bailout of the non-insurance portions of AIG does not negatively change the solvency strength of its insurance subsidiaries."
The NAIC is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and five U.S. territories.
"State insurance regulators have done what we do best," Praeger said. "We worked together — under the leadership of New York State Insurance Superintendent Eric Dinallo and Pennsylvania Insurance Commissioner Joel Ario — to ensure that the AIG insurance companies and the consumers they serve were not harmed by the financial troubles of the parent company."
The Federal Reserve this week agreed to lend AIG $85 billion to finance the insurance giant's liquidation over the next two years. Some of AIG's auto insurance subsidiaries are expected to be sold, but any such sale must be approved by state regulators.