The Alabama Department of Insurance is working closely with insurance regulators from New York and Pennsylvania to ensure that Alabama policyholders with American International Group (AIG) companies are protected, Commissioner Jim L. Ridling said today.
“Alabama consumers with AIG-affiliated policies can take heart in that the insurance companies affiliated with AIG are solvent and have the ability to pay claims,” Commissioner Ridling said. “Our job here at the Alabama Department of Insurance to ensure that they continue to have the ability to pay.
Commissioner Ridling notes that AIG’s financial troubles involve the holding company, which is not an insurance company. AIG wants to use some of the liquid assets of its insurance companies to help solve its holding company financial issues.
“We are coordinating closely with the New York and Pennsylvania departments, which are the primary regulators because those are the main domicillary states of the companies, to ensure that any action taken will continue to provide the financial guarantees to Alabama consumers,” Commissioner Ridling said. “We will not agree to any resolution that jeopardizes our consumers.
“We advise Alabama consumers to not react hastily, but continue to monitor our efforts on their behalf.”
AIG has 10 life insurance companies that write business in Alabama. In 2007, those companies took in $229.5 million in premiums and held about 3 percent of the market share. Its 22 property and casualty companies wrote $248 million in 2007, holding about 4 percent of the market.