The National Association of Insurance Commissioners is lashing out at proponents of a national charter in the wake of the bailout of American International Group Inc., saying state control helped keep the company afloat.
Today, an op-ed article in The Wall Street Journal by a bipartisan group from the Senate and Congress blasted state control of the insurance industry.
During a media briefing hosted today by the Kansas City, Mo.-based NAIC, commissioners said state insurance regulation kept New York-based AIG's subsidiaries healthy while the firm’s non-insurance assets, such as credit default swaps, which are federally regulated, absorbed large-scale losses.
“I am disappointed at the political chutzpah of some people in this situation,” said Pennsylvania insurance commissioner Joel Ario, referring to proponents of a national insurance charter in light of AIG’s struggles.
Last week, the Federal Reserve of New York announced that it was lending AIG $85 billion to meet liquidity needs after ratings agencies downgraded the firm, causing shares to plummet (InvestmentNews, Sept. 17).
NAIC commissioners have emphasized that policyholders of AIG and its subsidiaries are safe and will remain protected.
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