Toll Free: 1.800.4.Accident | Local: 206.727.4000

Legal Action Against AIG

Davis Law Group




AIG Insurance: Company Profile

American International Group, Inc. (AIG) (NYSE: AIG) is an American insurance corporation. Its corporate headquarters are located in the American International Building in New York City. The British headquarters office is on Fenchurch Street in London, continental Europe operations are based in La Défense, Paris, and its Asian headquarters office is in Hong Kong. According to the 2008 Forbes Global 2000 list, AIG was once the 18th-largest public company in the world. It was listed on the Dow Jones Industrial Average from April 8, 2004 to September 22, 2008.

AIG suffered from a liquidity crisis when its credit ratings were downgraded below "AA" levels in September 2008. The United States Federal Reserve Bank on September 16, 2008 created an $85 billion credit facility to enable the company to meet increased collateral obligations consequent to the credit rating downgrade, in exchange for the issuance of a stock warrant to the Federal Reserve Bank for 79.9% of the equity of AIG. The Federal Reserve Bank and the United States Treasury by May 2009 had increased the potential financial support to AIG, with the support of an investment of as much as $70 billion, a $60 billion credit line and $52.5 billion to buy mortgage-based assets owned or guaranteed by AIG, increasing the total amount available to as much as $182.5 billion. AIG subsequently sold a number of its subsidiaries and other assets to pay down loans received, and continues to seek buyers of its assets. NY Attorney General Andrew Cuomo has stated he wants to disclose names of those receiving bonuses.

In the United States, AIG is the largest underwriter of commercial and industrial insurance, and AIG acquired American General Life Insurance in August 2001. AIG sold auto insurance policies through its subsidiary unit, AIG Direct (aka aigdirect.com). The policies they offered included insurance for private automobiles, motorcycles, recreational vehicles and commercial vehicles. AIG purchased the remaining 39% that it did not own of online auto insurance specialist 21st Century Insurance in 2007 for $749 million. With the failure of the parent company and the continuing recession in late 2008, AIG rebranded its insurance unit to 21st Century Insurance. In April 2009 it was announced that AIG was selling the 21st Century Insurance subsidiary to Farmers Insurance Group for $1.9 billion. AIG sells travelers insurance internationally through Travel Guard, headquarterd in Stevens Point, Wisconsin.

Lawsuits Brought Against AIG Insurance

Have you had an accident where either yourself or the at-fault has been insured by AIG Insurance, it is essential that you research past litigation involving your insurance company if you hope to be successful in negotiating your own settlement or court case. Research will mitigate the risk of repeating mistakes others have made when legally dealing with your insurance companies and can provide unique insight as to which legal courses of action might affect the value of your settlement. Additionally, substantial legal research helps highlight pivotal strategies and avenues that have historically helped win lawsuits against major insurance companies such as AIG Insurance.

Insurance companies are renowned for stalling the release of settlement funds until the absolute last possible minute. While the ethics of this practice are highly questionable, the practice is unfortunately implemented by an extremely high percentage of insurance companies. This strategy has been devised as both a money-making and a money-saving technique. Major insurance companies usually have access to tens of billions of dollars due to high volume revenue and cash flow. Similar to banks, they invest these funds in order to amplify their profits. Even if they are required to pay a settlement, they will hold the money as long as legally possible in a leveraged effort to increase their own profits through the interest they earn on their investments.

In addition to delaying the disbursement of settlement funds, most insurance companies implement many of the following strategies to cut costs and generate profit:

• Nickel and dime smaller individual clients with various charges with the knowledge they cannot afford to investigate their legal options.
• Present clients with a very small initial settlement offer, as many policy holders do not realize they do not have to accept the insurance company’s first offer.
• Wait until the last possible week to disperse funds, as some negotiations can last well over a year.
• If you have sustained personal injuries that will be permanent, it is important to use an expert trial attorney.

Cases Involving AIG Insurance:
Insurance Coverage Disputes Lawyers in the Seattle Area (View Full Article – Davis Law Group)

Further Research:

Davis Law Group Library – AIG

Links:

Can I file a lawsuit against AIG Insurance?
Who else has filed a lawsuit against AIG Insurance?
List of lawsuits brought against AIG Insurance.

2101 Fourth Avenue, Suite 630
Seattle, WA 98121
Phone: (206) 727-4000
Fax: (206) 727-4001

 

Connect with us or read reviews at any of the social media sites:

Davis Law Group and attorney Chris Davis has been featured in news reports on these local and national news sources:

Blog

Insurance Coverage Disputes

• Class Action Lawsuit Against Farmers Insurance Settles Nov. 29

View All

Videos

Insurance Coverage Disputes:

• FYI: Insurance bad faith claims in ...
  

Watch All

• Case Results
• Blog
• Firm Library
• FAQs
• Videos
• Resources