AIG insurance policies secure, says N.Y. insurance official
In a televised statement Sept. 16, New York State Department of Insurance Superintendent Eric R. Dinallo confirmed that policies issued by American International Group (AIG) insurance companies were secure.
“AIG policies were always safe, and their security is even more enhanced now,” he said, noting that the unprecedented $85 billion government loan to AIG should end any speculation that insurance company reserves would somehow be liquidated to meet the parent company’s cash needs.
Dinallo also stated that the government loan to AIG would not negatively affect the solvency or security of the subsidiary insurance companies. He explained, “Liens against the parent company AIG are not liens against the insurance businesses.”
AIG is a major insurer of general aviation, including both aircraft owner’s and aircraft renter’s insurance.
“As the events with AIG unfolded, we monitored the status and security ratings of their insurance carriers very closely,” said Greg Sterling, executive vice president and general manager of the AOPA Insurance Agency. AOPAIA places aviation insurance business for AOPA members.
Referring to ratings assigned to insurance carriers by industry watchdog agencies like A.M. Best and Standard & Poor’s (S&P), Sterling said, “Throughout the cash liquidity situation with the parent company, the financial security ratings of the AIG insurance company businesses remained high.”
As of Sept. 17, the insurance companies used by AIG Aviation were rated “A+” (strong) by S&P and “A” (excellent) by A.M. Best. Whenever possible, insurance brokerages generally look for insurance companies with a minimum of an “A” rating for customers.
AOPA Insurance Agency customers with concerns or questions can get more information by reading AIG FAQs online or by calling 800/622-AOPA (2672).
September 18, 2008