Brett Arends of The Wallstreet Journal Online recently addressed concerns of AIG policyholders.
Brett explains that there are three separate barriers protecting your retirement annuity, long term care, or other type of insurance policy.
-AIG on Wall Street is an umbrella company, while the policy is actually held by a subsidiary in your state. The policy is backed by assets and insulated from the parent company’s woes.
-If the state level subsidiary did get into financial difficulty, the state insurance commisioner would jump in and take control of the company. In the event this was occur, Brett states the policyholders would get their money back before any other creditor would be paid.
-If these steps didn’t completely cover you, state guaranty funds should.
In summary, policyholders have regulations protecting them. To read an excerpt and request the full article, please click here.
