Information for AIG Policy Holders (from www.aigag.com)

Q. American International Group, Inc.’s (AIG) CEO announced a plan for the company’s future, which includes the sale of the AIG American General insurers.
Why did AIG make the decision to sell its domestic life insurance business?A. Quite simply, because the domestic life insurance business is valuable. The proceeds from a sale of these assets can be used toward paying off the two-year $85 billion secured credit facility issued by the Federal Reserve Bank in September 2008 to help AIG with its short-term liquidity needs.

Q. What does a sale mean for policyholders?
A. First and foremost, we want to assure you that your policies are safe and secure. The insurance policies written by one of our insurers are the direct obligations of that underwriting company -- not AIG or any prospective buyer. The sale of an insurer does not change its obligations to its policyholders.
Our commitment to customer service remains the same, and we continue to strive to exceed your expectations in everything we do. Our customer service centers are available to assist you with questions or policy maintenance issues.

Q. Can you tell me more about how policies are protected?
A. Insurance is a highly regulated industry. All insurance companies doing business in the United States are regulated by state law, and required to maintain enough capital and surplus to satisfy their obligations to their policyholders. The type and quantity of investments in which insurance companies may invest surplus capital is also limited by state law. Although various companies owned by AIG are part of a larger insurance holding company system – including AIG American General insurers – each company is individually responsible for the liabilities associated with the business that it sells. In addition, each insurer is individually regulated by its state of domicile for compliance and financial solvency independent of its parent or affiliates. This includes ongoing financial reporting to the regulator and undergoing periodic financial examination.
In accordance with state insurance requirements and investment guidelines, an insurer’s general account is primarily invested in high-quality investment grade fixed income securities (bonds). The investment objective of the general account is to optimize yield, adjusting for credit risk, liquidity and liability characteristics.
State insurance regulations are substantial and are designed to preserve and enhance the solvency of the general account and to assure that the contractual obligations to our policyholders are fulfilled. These regulations, along with the conservative investment requirements, help to safeguard policyholders.
It is important to note that the guarantees related to individual AIG American General insurers life policies and annuity contracts are backed by the general account of the respective issuing companies. These general accounts support only the obligations of AIG American General life insurance companies and are not obligated to support any other AIG businesses.
If you would like to see what the state insurance regulators and the National Association of Insurance Commissioners have to say on this matter, please go to www.aigag.com and click on the main banner for more information.

For more detailed information on specific insurer ratings visit www.AIGAG.com/ratings.

Q. Someone has approached
me about surrendering my
AIG American General insurer policy or annuity contract.
What should I do?
A. Please be sure you have all the facts before making a decision. Visit www.aigag.com for more information.
Q. Who are AIG American General’s re-insurers?
A. AIG American General companies utilize many re-insurers. The major companies are Swiss Re, RGA Reinsurance, Transamerica Reinsurance, Munich Re, and Gen Re.
Q. Are policies insured under
the FDIC?
A. No. The FDIC insures bank accounts – checking, savings, trust, certificates of deposit (CDs), IRA retirement accounts held at the bank and also money market deposit accounts. All of these bank accounts generally are insured by the FDIC up to the legal limit of $100,000.
The FDIC does not insure products such as mutual funds, annuities, life insurance policies, stocks and bonds.
AIG American General, www.aigag.com, is the marketing name for the insurance companies and affiliates of American International Group, Inc. (AIG), which comprise AIG’s Domestic Life Insurance Operations. Information regarding American International Group, Inc. (“AIG”) or AIG American General presented in this brochure is for informational purposes only and represents combined statistical information of the member companies of AIG or AIG American General. Neither AIG nor AIG American General underwrites any insurance policy described within this brochure. The licensed insurance company underwriting the product is solely responsible for its own financial condition and its contractual obligations.