JL_risklogo.png

Workers Comp Audit Stress Reducer
Use It For Your Next Premium Audit

AIG Failure Would Have An Effect On My Workers Comp Policy?

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn

AIG Failure Effect On My Workers Comp Policy

If you are covered for Workers Comp by AIG, there will still be coverages for your company even if they were to completely fail. Each state has a guaranty fund that will keep the claims payments in place. Those payments may be delayed until the fund can absorb the claims. This is true for any carrier that operates in a state. There is a great safety net in place.  The safety net takes time to get claims payments initiated as they have to review all the claims coming in the door. 

Picture of Man with jenga game AIG failure
123RF

If AIG is operating as a TPA (Third Party Administrator) with your Workers Comp claims as your company is self-insured or is part of a self-insured group, then things could get tricky. Pulling your TPA agreement and having someone look over it may be a great idea.

You could be stuck with hiring another TPA as once a TPA fails, you are on the hook to keep processing the claims. I have seen companies have to pay for TPA services two or three times in one year due to the TPA’s failure. State insurance departments may give you some leeway, but you are the ultimate payer when your TPA fails.  

PLEASE NOTE THAT TPA’S ARE NOT COVERED UNDER A STATE GUARANTY FUND IN ALMOST ALL CIRCUMSTANCES.

It is very unlikely that AIG will fail. The financial arm of AIG has always been financially healthy.  There is going to be a buyer, even if it is the US Government or a foreign buyer such as China. It is still wise to have a contingency plan in place as these are difficult times for any financial sector companies, including Workers Comp and other insurers.

GreatInsuranceDirectory.com – Insurance Directory

Update – AIG did not fail and has rebounded to somewhat of a healthy status.  

©J&L Risk Management Inc Copyright Notice

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn

Table of Contents

Related...

AIG – Government Missed Point

AIG Failure TARP Bailout The Government Missed The Point of AIG.The following is a passage from a document published by the UNITED STATES DEPARTMENT OF

James Moore

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Mgmt Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications

Subscribe

Get the latest workers' comp news FREE!

Name
This field is for validation purposes and should be left unchanged.