New Jersey insurance regulators keeping close eye on AIG situation

New Jersey insurance regulators have been watching the American International Group situation, as one of its subsidiaries is domiciled in the state.

The federal bailout of AIG with a two-year bridge loan of $85 billion could at some point affect the operations of American International Insurance of New Jersey, an auto carrier with 76,000 customers in the state.

If AIG begins to sell assets, an approach that most experts say is likely, then New Jersey Insurance Commissioner Steven M. Goldman would have to approve any sale involving American International Insurance of New Jersey.

If AIG’s subsidiaries were asked to provide funding to shore up the holding company, then the insurance commissioners in whose states those subsidiaries are domiciled would have to approve the move, said Ed Rogan, a spokesman for the New Jersey Department of Banking and Insurance.

The American International Insurance of New Jersey generated about $80.6 million in premium volume in 2007 and is “well capitalized,” Rogan said.

He noted that the agency received “a couple of calls” from people concerned about how the AIG situation would affect their policies.

State and federal officials have said that insurance policies covered by AIG and its subsidiaries are safe because only the holding company is affected in the takeover by the federal government, halting a bankruptcy filing by the global insurance giant.


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