Travel Insurance, Wall Street and You
Are you wondering if that travel insurance you bought from Travel Guard is still good now that its parent company, American International Group (A.I.G.), needed to be rescued from bankruptcy by the government this week?
Fear not. You're still covered, according to the company.
When asked about the recent turn of events, Travel Guard spokesperson Dan McGinnity responded confidently: "Travel Guard policyholders are not affected by the restructuring of our parent company. Travel Guard is strong and the insurance company that underwrites our policies is strong, with ample resources to underwrite our policies and pay the claims of our policyholders." (For the record, the underwriter is National Union Fire Insurance Company, a member company of AIG Commercial Insurance, which McGinnity says has "statutory surplus of $26.7 billion and invested assets exceeding $70 billion.")
Plus, insurance policies are protected by state regulators. In a statement issued on Tuesday, the National Association of Insurance Commissioners -- an organization of insurance regulators from every state and territory in the U.S. -- reassured worried policyholders: "The number one job of state insurance regulators is to make sure insurance companies operate on a financially sound basis. If needed, we immediately step in if it appears that an insurer will be unable to fulfill the promises made to its policyholders." On Wednesday it reconfirmed its position, stating decisively: "AIG Able to Pay Claims."
So, what should potential insurance buyers know? McGinnity offered a few tips, especially in light of recent airline bankruptcies: "Consider a third party travel insurance policy issued by a company ... that includes coverage for financial default. To ensure that you get this coverage, the policy must be purchased within 15 days of when you book your trip."
By Christina Talcott |
September 19, 2008; 8:15 AM ET
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Posted by: BizTraveler | September 19, 2008 11:13 AM
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