In light of the near bankruptcy of American International Group, some people have expressed concern over settlement annuities purchased from AIG insurance companies. These are annuities purchased in conjunction with a structured settlement of a personal injury case. Many infants and catastrophically injured persons depend upon these annuities for future income and medical expense.
These injured people have voiced concern as to whether AIG’s poor finances will result in AIG failing to pay on their settlement annuities.
The good news is that the near bankruptcy of AIG did not affect the solvency of such annuities. The federal bailout of AIG does not affect the AIG annuity companies.
This is the considered opinion of the general counsel of Creative Capital, a leading structured settlement broker.
Therefore, if you have had a structured settlement annuity with one of the AIG companies, it is safe, sound, and paying. Such AIG companies include American International Life Assurance Company of New York and American General Lfe Insurance Company.
If you have a question about a structured settlement, please feel free to contact us at 800-241-1313.
Mark E. Seitelman, 9/22/08, www.seitelman.com.