Union Privilege Reassures Union Plus Auto Insurance Participants of Coverage Despite AIG Bailout

With news of AIG’s $85 billion government bailout recently, Union Privilege’s Leslie Tolf assures TCU members participating in the Union Plus Auto Insurance program that they will continue to be insured and that their claims will be paid under their policies. 

The AIG insurance subsidiary AIG Direct, a member of the AIG Personal Lines Division, is the Union Plus program provider, she says. The AIG Personal Lines Division has $1.7 billion in policyholder surplus, as well as invested assets of $3.2 billion, according to AIG. These assets are protected by law and cannot be taken away from policyholders.

Tolf quotes the statement of the president of the National Association of Insurance Commissioners that “If you have a policy with an AIG insurance company, they are solvent and have the capability to pay claims.  As a holding company, AIG is a separate, federally regulated legal entity that is distinct and apart from its subsidiary insurers. The subsidiary insurers are governed by state laws designed to protect the interest of policyholders.”

Tolf assures that “We continue to be in contact with AIG and are closely monitoring the situation. I will update you as events unfold.”  In the meantime, rest assured that there are no current changes with auto insurance through the Union Plus AIG Auto Insurance program.

For some answers to five key questions about what AIG’s woes mean to consumers, see this article from CNNMoney.com.

Posted September 18, 2008

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