Posted on 03 Aug 2009
In response to incomplete and misleading information in the media regarding American International Group, Inc. (AIG) and the role of state insurance regulators, the National Association of Insurance Commissioners (NAIC) reiterates that policyholders remain protected.
"As public officials, it is the responsibility of the NAIC and state regulators to correct any misinformation that is being circulated,” said Therese M. (Terri) Vaughan, Ph.D., NAIC Chief Executive Officer. “Consumer protection is our first and foremost concern. The 71 state-regulated insurance entities within AIG are financially sound and are fully able to pay claims.”
This point was further underscored in a letter sent to the editor of The New York Times by Kermitt Brooks, Acting New York Insurance Superintendent and Chair of the NAIC’s AIG Managing Task Force and Joel Ario, Pennsylvania Insurance Commissioner and Vice Chair of the NAIC’s AIG Managing Task Force.
In the letter, the NAIC states that insurance regulators are engaged in a coordinated, comprehensive review of AIG's U.S. insurance company subsidiaries — at both the level of the individual companies and within and across the entire group of companies.
“During this extremely critical time, it is vital that important voices in the public discourse such as The New York Times, act and speak responsibly with the full recognition that making inappropriate assertions based on incomplete information ultimately hurts both policyholders and taxpayers,” the letter reads.