State updates AGLA policyholders on AIG

NASHVILLE - With the Federal Reserve agreeing to an $85 billion loan to American Insurance Group (AIG), Tennessee policyholders of its subsidiary American General Life and Accident Insurance Company (AGLA) might have questions. Tennessee Department of Commerce and Insurance Commissioner Leslie Newman says the state is confident AGLA is fully capable of continuing to honor the claims and other obligations it has to its policyholders.

AIG is a federally regulated legal entity that is distinct and separate from the insurance companies it holds. Those insurance companies are governed by state laws designed to protect the interests of policyholders by ensuring that reserves are available to meet policyholder obligations. The Department is committed to protecting the interests of Tennessee policyholders, and will work closely with new AIG management, AGLA management and other state regulators to fulfill this commitment.

“The Department’s role as a State regulator,” says Newman, “is to ensure that an insurance company continues to have the ability to pay claims as they arise.”

The No. 1 job of state insurance regulators is to make sure insurance companies operate on a financially sound basis. It is the Department’s responsibility to protect policyholders and ensure a healthy, competitive market for insurance products. Strict solvency standards and keen financial oversight continue to be the bedrock of State regulation. For further information, contact www.tn.gov/commerce/insurance or call 1-800-342-4029.