Commissioner reinforces message of patience
Published 8:47 pm Wednesday, September 24, 2008
Alabama consumers with insurance policies with American International Group companies should think twice before switching them to another company, Insurance Commissioner Jim L. Ridling said today.
“There are financial consequences to switching policies, and to dropping policies altogether,” Ridling said. “Be very sure that you are making a sound financial decision before you ever switch or drop a policy. The Alabama Department of Insurance wants to continue to assure Alabama citizens with AIG policies that the companies writing their policies are financially sound. The financial standings of the companies should not motivate anyone to change their policy.”
“We expect the highest level of integrity from the men and women who market products to Alabama families. And we will enforce it,” he said.
Commissioner Ridling reinforced the fact that AIG’s financial problems are with the holding company, which is not an insurance company. The underlying subsidiaries – the insurance companies – are subject to state financial solvency laws. All are solvent and paying claims.
“The companies have continued to meet their obligations,” Ridling said. “If these companies were not, then they would be placed into receivership. That hasn’t happened.
“We encourage any Alabama citizen with a question regarding this issue – or any insurance related issue – to contact us. We’ll do our best to provide answers to your questions.”