AIG- An Incompetent Group

AIG is pleased to announce we have changed our name to 21st Century Insurance. That is the message which was heard when they were called to discuss a case in which a family was run over by a drunk. While I am sure they are pleased to announce the change in name. It would be better if they announced a change in attitude and policy. Their policy holders pay the premiums and hope to never have to make a claim, but when they do make a claim on their own policy due to a wreck in which the other driver has no insurance or inadequate insurance what happens? You would assume that AIG would take some of the thousands of dollars in premiums paid by the policy holder and resolve the claim, or perhaps they would use some of the tens of billions (that is hard to write) they have received from their policy holders and the rest of the citizens of the United States. That is what a reasonable company would do. They collected premiums for years for just this situation. AIG chooses a different option they make a "offer" to settle the case for less than half the policy limits. They realize that they can keep all the money and make their policy holders hire an attorney to file suit and after spending significant time and money to get to trial and receive a verdict; they will only have to pay what they should have paid in the first place. (See UM blog 2/4/09) So they keep the money paid to them in premiums and they have all the billions which we have provide them in the stimulus package and force their policy holders to file suit to receive the very benefits they have paid for. What are they doing with their policy holders money and the billions of dollars they have received? While it is especially galling that AIG who has received billions of dollars in addition to the premium payments, they are not alone. Virtually every auto insurance company in Texas has the same attitude because they are allowed to by our Supreme Court and Legislature. If you want it to change let your representatives know. As always, I welcome your comments.