AIG to Policyholders: You Can Relax
Corrected on 9/18/08: An earlier version of this story misstated the value of the bailout of AIG. It involved $85 billion, not $85 million.
Chances are you don't have a healthcare policy with AIG, the insurance holding company that announced an $85 billion bailout yesterday from the federal government to prevent the company from going under. AIG's health insurance business focuses on supplemental policies sold through employers that pay a cash benefit if policyholders get cancer or have a stroke, for example, and plans that cover medical and other costs if someone is in an accident or becomes disabled. AIG also sells travel insurance directly to consumers. These plans typically provide coverage if you need emergency medical care or medical evacuation while traveling overseas.
If you have one of these plans, or if your life insurance policy is with AIG, the company says not to worry. "AIG continues to operate normally and remains adequately capitalized and fully capable of meeting its obligations to policyholders," Peter Tulupman, an AIG spokesperson, told me this morning. Skeptical that he's just spouting the party line? You shouldn't be, according to the National Association of Insurance Commissioners, which represents insurance regulators from all 50 states and the District of Columbia. "If you have a policy with an AIG insurance company, they are solvent and have the capability to pay claims," NAIC President Sandy Praeger, the Kansas insurance commissioner, said in a statement.
AIG is a holding company for some 240 subsidiaries, including about 70 life and health insurance companies, according to sources. Whatever the problems with the rest of AIG, the subsidiary insurers are financially solvent. Moreover, these insurance companies are governed by state laws that require them to maintain reserves and meet solvency requirements that protect policyholders, according to the NAIC. In the unlikely event that an insurer can't pay its claims, states also have guaranty funds in place that provide coverage within certain limits.
So if you've been worried, breathe easier. Meanwhile, AIG says its shingle is out and it is continuing to sell insurance. I believe it. In my mail today, I found a solicitation from the company encouraging me to buy a policy.
Tags: health insurance | insurance | AIG, Inc.
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Reader Comments
bringintheclowns
I absolutely hate the bullshit that Congress is doing. Bailing out the airline pensions, then Fannie and Freddie, then Bear Stearns, finally AIG. I believe people should become violent, and simply terrorize the ones responsible. American patriots of old did this all the time. If this is not your cup of tea, do to a lack of cajones, then allow me to lend you some passive actions you can take.
Like David Letterman, here is my top ten list.
1. Convert your money to another currency. Owning U.S. money is like owning stock. If the U.S. is full of shit, then change toilet paper brands. The massive deflation of printing funny money to AIG is only going to weaken your dollar. A two dollar loaf of bread will become four or more. Change your money to buy bread in the future. Push to remove penalties and charges for changing U.S. dollars into other monies or standards like gold.
2. Write your congressman. Find their damn home number and call them at all hours of the night. Break apart the lobby system. Find out who is lobbying, and screwing up your life and never purchase from them again. Tell all of your friends to do the same.
3. Try to set up a system where the people's vote usurps Congressional power like in state governments. We the people can amend amendments all the time at the state level. How many signatures does it take to undo the Congressional approval of AIG.
4. Remember this day, and engrain it in your mind. Never, ever invest in the stockmarket or America again. Allow the stock market to truly crash so that even the government cannot bail out the bullshit. Last time I checked people learn best through pain and suffering.
5. Act quickly because the world is poised to screw over us American's, and they will soon be flooding us will all of our worthless dollars. Prepare for Sith invasion.
6. Fix the Glass-Steagall act A.S.A.P. This repeal allowed banks to mix hedge funds with commercial or simply risk markets with solid investments. Banks never go under in any economy if their simply commercial. Of course they don't make great profits either. The great depressions taught us this lesson and set the Glass-Steagall act up. The republicans, and the democrats for that matter overturned this wise approach in 1999.
7. The entire republican party has to be destroyed politically because they are the worst, and you need to watch the democrats and any new formation of parties until you can transition to a truly independent party. Simply choose someone off of the street. These people could not do as much damage as party politics.
8. Do not forget to break apart the monopolistic system. 50 seperate entities should be a good number. Microsoft is the only operating system for P.C. break the sucker up. Boeing and a few other national security and airline groups need to be broken up as well. Auto industries should be cracked to pieces. Banks should really be broken up and not be able to centralize over state boundaries like we had before. The Time Warner media giant that went untouched in its merger needs to fall. Smaller companies like Dentsply that control most tooth implantation are wrong. Do your part and ask where your money is going and support the smaller businesses until we get a congress that breaks up monopolies.
9. Make every aspect of what we pay for in the government open to the public. Finances, time, etc. need to be available at the click of a mouse, and there is always someone board enough to check their records.
10. If all else fails, leave the country. Many people on these blog sites will tout you to just get the hell out. Leave the ignorant behind, and take your skilled labor elsewhere. When they cart America off to the auction block, you can come back and buy all that you lost.
85 billion dollars to a private corporation?
Why does the govt (read: Taxpayers) have to pay for their ineptitude and greed?
Is the CEO in a prison cell yet? If not, why not?
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