AIG life insurance holders-what happen

Quote from gnome:

Yes. Most companies retain only a portion of the face amount and reinsure the balance with one or more reinsurance carriers.

To my knowledge, there has NEVER been a default on the death claim in the US.
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"this time it's different"....where have i seen this quote before?....:D
 
Quote from ElCubano:

"this time it's different"....where have i seen this quote before?....:D
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Actually, it could be. We've never before suffered "credit exhaustion" nor the layer-upon-layer of derivatives backed more by hope than assets. I doubt anybody really knows the extent of the potential damage as this house of cards tumbles.
 
but who ranks first in bankruptcy. CDS conterparties or policyholders, I read in the mbia debacle that policyholders are second. now its possible that the dinallo will just break the law since its an election year and the political pressure is great
 
Quote from Daal:

but who ranks first in bankruptcy. CDS conterparties or policyholders, I read in the mbia debacle that policyholders are second. now its possible that the dinallo will just break the law since its an election year and the political pressure is great
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actually scrap that, as I understand insurance companies go into receivership and payout the money overtime. I dont know why aig would file for bankruptcy
 
Once in bankruptcy insurance claims can only be paid by Court Order. Limits AIG's ability to even settle claims.

This is going to tie up our Court System for years.

ERISA claims process...
File Claim - 60 Days Notice -
60 Days appeal period -
file suit in state or federal court. 60 days -
Court will order non binding mediation - No Settlement Possible (90 days).
Court will conduct hearing (90 Days)
You may win and receive an award
AIG Appeals (90 days)

About 1 year later if your lucky you receive an award which you'll never be able to collect.

As a result many claims are just dropped by the beneficiaries.
 
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