Insurance Agent Forum

[MedSuppPro]

I have a block of AIG LTCi. AIG was an A++ (AM Best) when I sold their LTC policies. Now I will have heard that they are on the ropes.

I've not heard of AIG selling their LTC block. They would have a hard time convincing another carrier of it's value.

I know that my clients whom are on claim will be taken care of (state fund - maybe). What I don't know is how will I explain this mess to my clients whom have paid their premiums and could end-up with nada!!!!!!

[al3]

Originally Posted by MedSuppPro

I have a block of AIG LTCi. AIG was an A++ (AM Best) when I sold their LTC policies. Now I will have heard that they are on the ropes.

I've not heard of AIG selling their LTC block. They would have a hard time convincing another carrier of it's value.

I know that my clients whom are on claim will be taken care of (state fund - maybe). What I don't know is how will I explain this mess to my clients whom have paid their premiums and could end-up with nada!!!!!!

AIG has some problems, but I don't see them going under... unless you have some inside info that I've not read.

What makes you believe they are going to sell their LTC block?

What makes you think your clients are in jeopardy? I assume you are keeping up on the company... probably more than the rest of us.

Please explain. I think we'd all like to learn more about AIG and the issues surrounding them.

Al

[moonlightandmargaritas]

A.I.G. Seeks Billion in Fed Aid to Survive - Mergers, Acquisitions, Venture Capital, Hedge Funds -- DealBook - New York Times

[Mr. Bill]

This is going to get ugly. As much as Alan Greenspan is responsible, it doesn't mean that his words don't have any effect on the markets.

Now, it really is time to elect Obama!!!

US in 'once-in-a-century' financial crisis : Greenspan

[somarco]

AIG may well sell their LTC block, but my guess is the P&C block will go first. There is a good chance AIG will be sold off piecemeal rather than forced into receivership.

Most policyholders have nothing to worry about. AIG has statutory reserves, reinsurance and state guaranty funds as a back up.

Those who have "investments" (cash value life, annuities, etc.) may suffer more.

[al3]

Originally Posted by somarco

Most policyholders have nothing to worry about. AIG has statutory reserves, reinsurance and state guaranty funds as a back up.

Those who have "investments" (cash value life, annuities, etc.) may suffer more.

Aren't these two statements contradictory?

Please explain.

(Not criticizing... just trying to understand what you posted. You know how "slow" we seniors who are AARP members are )

The OLD Jackass

[somarco]

In simple terms . . .

Term life policyholders shouldn't have to worry. Those who have UL (or other flex life plans) or annuities may find future credits (interest earning) lower than originally projected.

P&C policyholders may face higher renewals (emphasis on may) if that line of coverage is not profitable. This may be true regardless of whether or not AIG retains that line.

Basically, all policies that have annual renewal terms are subject to increase. Term renews but subject to the constraints of the original contract terms.

[Markingriffin]

AIG was in the news a lot today and on aol news. I think they are a sinking ship and will fall any day now.

[MedSuppPro]

Markinggriffin, Well Ya!

But, what happens to AIG's LTC block. It is not profitable, given their rate hike history.

These are good people who've planned and attempted to provide for their future. They are not some $10 gazillion golden parachute CEO. What happens to these good people. If they are not on claim they will be SOL! Unless, unless some LTC carrier sees it is important to not let a bad example happen.