Is Your AIG Insurance Policy Safe?

by Brett Arends

Published September 17, 2008

In the wake of the 2008 financial crisis, Brent Arends of the Wall Street Journal offers assurances to insurance company policyholders regarding the safety of their investments should their provider declare bankruptcy. National insurance corporations are usually broken down into state subsidiaries that are tightly regulated by state oversight. The subsidiaries are required to hold conservative assets that are walled off from any Wall Street difficulties that threaten the national corporation. There are also mandatory state takeovers of failed insurance companies and state guaranty funds that pool money from insurance companies, providing coverage for policyholders in the event of a company collapse. For a link to the complete article, please click here.