Because AIG is an extremely large insurance company making the headlines, we began receiving calls. Of course this raised concern with our clients, especially those clients that have life insurance and annuities placed through our office.

We’re writing to assure you as best we can that everything is fine. The AIG bailout had everything to do with the investment operations of that company, not the insurance operations. Insurance regulation is very well-developed and has produced extremely secure results for policy holders over a period of decades.

Although carriers have some investment exposure to risky stocks, that exposure is extremely limited – one carrier’s exposure to Lehman Brothers was only .4% of their investment portfolio, that’s a ratio of .004 to 1. That same carrier has over $11.5 billion in cash.  Insurance regulators make sure that companies under their watch retain large cash reserves to prevent problems like the one’s we’re seeing in the banking industry.

You may remain concerned and that’s understandable. If so, please call or e-mail me, if you’re interested in learning more detail about the solvency of your insurance company.

While we are looking to local, state and national leaders for solutions to today’s big problems there is no better time to take action on things you can control, like making sure you are properly protected against fire, liability losses, death and disability. If the market downturn has caused pain because of a “paper” loss, what would a real loss feel like? One in which you actually had to pay money to someone else to make yourself or that injured party whole–I submit that would be lot more painful.

CAN YOU HEAR ME? We can help and we want to make sure you survive and thrive in the future, now is the time to act. Please contact our offices to schedule your next Peace of Mind Conversation with the Haas Agency.