What If My Insurance Company Goes Bankrupt?
Problems with AIG, one of the world's largest insurers, have people wondering if there are holes in their safety nets.
Should You Be Worried?
No, and here's why.
Insurance is regulated on a state-by-state basis, and insurers are required to have enough cash on hand to pay claims.
And when it comes to the current AIG crisis, it is important to keep in mind that the problems are with the AIG holding company, not the AIG subsidiaries that underwrite insurance policies.
Even if AIG holding files for bankruptcy, the subsidiary that sold you your life insurance policy will continue to operate normally.
If Your Insurer Becomes Insolvent
You're still ok.
You're protected by your state's guaranty fund.
