Pennsylvania Insurance Commissioner Joel Ario has informed Pennsylvania policyholders of the AIG group insurance companies that the Insurance Department’s most recent examination of these companies indicates that they are financially sound and their insurance policies are safe.

“I want to assure Pennsylvania policyholders that the AIG insurance companies doing business in our commonwealth are solvent and have the assets needed to pay present and projected claims,”  Commissioner Ario said.

In the wake of recent national reports concerning the financial stability of the parent company, AIG International, Inc., Ario explained it is understandable that consumers are concerned and may have questions concerning their existing policies.

“Shopping the market for new insurance quotes is something that my office encourages policyholders to do from time to time. But I do want to caution AIG policyholders, who are being approached to cancel their policies, to be wary of false information concerning the financial stability of the AIG insurance companies. Anyone making a statement or sales presentation that is misleading or misrepresents the financial condition of an insurance company is violating the Unfair Insurance Practices Act. If an insurance agent or a competing insurance company tells you to replace any policy because an AIG insurance company is in trouble and may not be able to pay your claim, that statement is misleading and against the law,” Ario warned.

“State insurance regulators have done what we do best,” said NAIC President Sandy Praeger. “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.”

Insurance Department Assures AIG Policyholders (Penna. DOI 9/24/08)

September 26, 2008