AIG UPDATE - UPDATE FOR CONCERNED PENNSYLVANIA INSUREDS AND CLAIMANTS
PENNSYLVANIA INSURANCE CLAIMS AND PERSONAL INJURY LAWYER, JEFFREY REIFF, REITERATES HIS ADVICE TO CLIENTS - REMAIN CALM - DO NOT PANIC - THE STATE INSURANCE COMMISSION HAS THE SITUATION UNDER CONTROL WITH AIG
Pennsylvania Insurance Commissioner, Joel Ario, informed AIG Policyholders in Pennsylvania that the Insurance Commission’s most recent examination of AIG Companies indicate that they are financially sound and their insurance policies are safe. “Making sure that insurance companies are financially stable is a top priority with the Rendell administration”, stated Commissioner Ario. Ario further stated “I want to insure Pennsylvania policyholders that AIG Insurance Companies doing business in our Commonwealth are solid and have the assets needed to pay present and projected claims”.
As my previous blogs have noted, we have received calls of concern from AIG insureds or from plaintiffs who have claims against AIG insureds and we have told them not to panic, that all will be fine.
While it is understandable that many consumers are concerned and have questions concerning their claims or their policies, the state has financial safeguards in place as outlined in my blog of September 22, 2008. On a national level, the National Association of Insurance Commissioners (NAIC) has established a working group to oversee AIG’s insurance interests and coordinate with federal regulators as needed. Pennsylvania Insurance Commissioner, Ario, serves as a Vice Chairman of this Committee.
The 24 month $85 billion federal loan to AIG relates to the current needs of the parent company and NOT its insurance company subsidiaries. The non-insurance parent company is not regulated by the states and is not subject to the same rigorous investment, accounting and capital adequacy standards as the state regulated insurance subsidiaries.
AIG is an international insurance company of 11 Pennsylvania-based insurance subsidiaries which the Pennsylvania Insurance Department is the primary regulator. They provide property and casualty coverage, accident and health coverage, financial products and risk management services, corporate and consumer clients across the United States. Collectively, the Pennsylvania subsidiaries of AIG wrote more than $12.5 billion dollars in direct written premium in 2007. For more information on this topic, please see my September 22, 2008 blog entitled “Financial Crisis at AIG Has Large and Confusing Impact on Pennsylvania and New Jersey Automobile Owners Insured With AIG”.
Philadelphia personal injury and insurance claims lawyer, Jeffrey Reiff, advises his clients not to panic. There are safeguards in place.
If you have any questions regarding the AIG crisis and how it effects you, please contact the Pennsylvania Insurance Department, Bureau of Consumer Services at 1-717-787-2317 or visit their website at www.insurance.state.pa.us.
The law firm of Reiff and Bily has been representing catastrophically injured individuals since 1979 and has had a multitude of experience dealing with insurance company liquidation, insolvencies, defaults and bankruptcies on behalf of their injured clients. If you have any concerns regarding this issue or have an accident or are involved in a claim, or you are concerned about your insurance company’s stability, please feel free to contact us for a free consultation at 1-800-421-9595 or online at www.reiffandbily.com.
