Washington consumers who hold policies with American International Group, or AIG, will not be affected by the conglomerate’s financial troubles, according to the state insurance commissioner

“Many consumers have contacted my office concerned about their AIG insurance policies,” Insurance Commissioner Mike Kreidler said in a Tuesday statement. “I’ve assured them that AIG’s insurance companies have the money necessary to pay claims. Regardless of what happens to AIG, there’s a firewall in place to guard the assets of the insurance companies and protect policyholders.”
AIG owns 176 other companies in addition to 71 insurance companies. The insurance companies are regulated in the states where they are based, the commissioner said.

Even if AIG’s insurance companies were forced to liquidate, one of Washington’s two guaranty associations would step in to pay policyholder’s claims, under state law. The two guaranty associations protect various lines of insurance, including life, home, property and auto policies.

“The insurance companies owned by AIG remain strong, in part because state-based regulation continues to wall them off from the high-risk activities of their parent company,” Kreidler said.

Policyholders may not realize that their policies belong to AIG. The state maintains a list of about 40 companies that do business under AIG. Among them are 21st Century Casualty Co., American General Assurance Co. and Yosemite Insurance Co.