What happens if AIG affiliated insurance companies get into financial trouble?
State regulators have a variety of tools available if it appears that an insurer is not going to be able to fulfill its promises to policyholders. A state regulator can take over management of an insurer through conservation or rehabilitation. Even if liquidation of an insurance company is necessary, policyholder claims will generally be paid either by the insurance company or by a guaranty fund, which all states have in place to provide coverage to policyholders. This protection applies to direct business written by authorized licensed insurers. For information on Michigan’s guaranty funds, visit: Michigan Property and Casualty Guaranty Association: http://www.mpcga.comand Michigan Life & Health Insurance Guaranty Association: http://www.milifega.org/links.cfm.
State regulators have a variety of tools available if it appears that an insurer is not going to be able to fulfill its promises to policyholders. Your state regulator can take over management of an insurer through conservation or rehabilitation. Even if liquidation of an insurance company is necessary, policyholder claims will generally be paid either by the insurance company or by a guaranty fund, which all states have in place to provide coverage to policyholders. This protection applies to direct business written by authorized licensed insurers. For more information, visit the National Organization of Life and Health Insurance Guaranty Associations (NOLHGA) at www.nolhga.com or the National Conference of Insurance Guaranty Funds (NCIGF) at www.ncigf.org.
