NEW YORK--(BUSINESS WIRE)--Oct. 22, 2012--
American International Group, Inc. (NYSE: AIG) announced today that
AIG’s life insurance companies resolved multi-state examinations
relating to the handling of unclaimed property and the use of the Social
Security Administration’s Death Master File (SSDMF) to identify death
claims that have not been submitted to the company in the normal course
of business. AIG had previously disclosed that its life insurance
companies had received regulatory inquiries, including a multi-state
unclaimed property audit and related market conduct examination.
The company will pay an $11 million regulatory assessment to the various
state insurance departments to defray costs of the examination and
monitoring. In addition to reserving for the regulatory assessment, AIG
will increase its estimated reserves for policy holder benefit reserve
death claims relating to these audits by $55 million in the third
quarter for interest and expected acceleration of benefit payments under
the settlement, including early payment of policy proceeds under certain
older industrial life policies.
AIG is now taking enhanced measures to, among other things, routinely
match policyholder records with the SSDMF to determine if its insureds,
annuitants, or retained account holders have died and locate
beneficiaries when a claim is payable. This puts AIG among the industry
leaders in ensuring that beneficiaries will receive insurance proceeds.
In 2011, prior to receiving any regulatory inquiries, AIG began a
diligent review of its policyholder records, including matching records
against the SSDMF to identify polices where the insured may be deceased
but no claim had been submitted to the Company. To date, as a result of
this effort, AIG has paid more than $100 million to more than 22,000
American International Group, Inc. (AIG) is a leading international
insurance organization serving customers in more than 130 countries. AIG
companies serve commercial, institutional, and individual customers
through one of the most extensive worldwide property-casualty networks
of any insurer. In addition, AIG companies are leading providers of life
insurance and retirement services in the United States. AIG common stock
is listed on the New York Stock Exchange and the Tokyo Stock Exchange.
Source: American International Group, Inc.
American International Group, Inc.
Jim Ankner (News Media)
Liz Werner (Investment