Idaho state Department of Insurance Director Bill Deal is warning AIG insurance policy holders to be wary of pitches to switch their insurance. “AIG’s insurance companies are financially sound, with substantially more in assets than they need to pay all valid present and projected claims,” Deal said in a statement today. “Don’t make any rash decisions if you have a policy issued by an AIG insurance company. If you have a life insurance or annuity policy and someone tells you to replace it because of the troubles at AIG’s parent company, we encourage you to call us immediately.” He added, “If someone tells you to replace any policy because an AIG insurance company is in trouble and may not be able to pay your claim, that is not only untrue, it is against the law. Call us. Some regulators have received reports that this is happening. Our job is to protect consumers from improper sales practices.” He noted that replacing, cancelling or liquidating insurance policies or annuities can have hidden costs and tax consequences, which are legally required to be disclosed to consumers. Click below for some FAQ’s from Deal’s department about the AIG situation.
Betsy Z. Russell covers Idaho news from The Spokesman-Review's bureau in Boise.
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