FOR IMMEDIATE RELEASE
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Sept. 18, 2008
Public Information Officer
Editor’s Note: Consumer FAQs are attached to this release.
AIG policyholder protection is top priority,
Insurance Commissioner Praeger says
Company’s state-regulated insurance subsidiaries are solvent
KANSAS CITY, Mo. – National Association of Insurance Commissioners (NAIC) President and
Kansas Insurance Commissioner Sandy Praeger said the insurance companies within financially
troubled American International Group (AIG) are solvent.
Commissioner Praeger issued the following statement, through NAIC, regarding the Federal
Reserve action in response to financial issues facing AIG:
“State insurance regulators commend the Federal Reserve on its move to provide a line of credit
to AIG's financial holding company. We have been actively participating and aiding the efforts
to shore up the federally regulated portions of AIG that were under intense stress.
“As always, the primary concern of state regulators is the continuing ability of insurance
companies to meet consumer expectations and pay claims. The 71 state-regulated insurance
companies within AIG did not receive a bailout; they are financially solvent.
“The federal bailout of the non-insurance portions of AIG does not negatively change the
solvency strength of its insurance subsidiaries.
"State insurance regulators have done what we do best. We worked together to ensure that the
AIG insurance companies and the consumers they serve were not harmed by the financial
troubles of the parent company.
“In discussions with AIG and the federal government, our top priority was to take whatever steps
necessary to protect the ability of the insurance companies to pay claims, as well as to assist the
federal government in their efforts to stabilize the broader market.”
Regarding the possible sale of any necessary AIG insurance assets, Commissioner Praeger said,
“We will eva