AIG plan of action- for brokers & agents

[joshril]

How will all of this affect agents at AGLA? I will be taking the PA exam soon and have accepted a position with a local AGLA office. As a newbie should I think about going somewhere else?

From what I've read, the big problems with AIG are not in it's insurance related business. However, cutbacks in all segments are possible.

My guess is they will get their bridge loan from the Fed, and that will be that.

 

[HomeService]

I would not think it would effect the AGLA agents directly, right now. The upper home office folks would be the first to feel it. I would think. Later the agents may feel it. There could be a large re-vamp effort and it could be good for agents, or another company buys AGLA out from AIG , or who knows. It could go either way. new agent: I would go ahead and do the job and get trained , if I were you. Get some training under your belt.

 

[xrac]

AIG will probably continue to operate just like a Conseco. Someone may acquire the insurance operation.

 

[Slim]

xracAIG will probably continue to operate just like a Conseco. Someone may acquire the insurance operation.


I agree xrac.

It seems when a private or public insurance or banking
institution goes out , the other players will buy them
piecemeal. Maybe divide them as contracted industry wide
for the good of the whole.

As for Freddie Mac and Fannie Mae, I believe they were
introduced by gov't mandate decades ago.

For the gov't to turn its back on Fannie Mae and Freddie Mac would be ignoring its promise.

If AIG , Lehman Brothers , and Merrill Lynch were led to their
demise by law, the leadership should have stood up against it before, when they saw it coming. Individual responsibility!

Slim

 

[ABC]

I just submitted a life app with them today.

It was a Term ROP and they had the best rate.

I am a bit nervous about it.

 

[somarco]

Best rate isn't always the best choice.

Ask the folks who bought Executive Life . . .

 

[InsuranceGuru]

I just submitted a life app with them today.

It was a Term ROP and they had the best rate.

I am a bit nervous about it.

Sorry, but I have to disagree with a lot of people here that this is merely a passing thing. The market is bad enough (who's going to deny this?), it was bound to happen at some point to some of the insurance companies out there. This is an article explaining what the problem is:

[I'd post a link to the story on this, but I'm apparently not allowed to do that until I post 15 posts. Go to google and search "AIG, news" and look for the second indexed site, a Forbes article on the financial issues AIG is facing right now.]

I know there's a fine line on this site about posting a dissenting opinion of the "greatness" of an insurance company's financial position, but there's no liability as long as the discussion pertains to information gathering and not for the purpose of competing for business. Let's just be clear, though, that the cat is totally out of the bag now.

In this regard, I respectfully submit that I would hold off on placing interest-bearing insurance products with AIG if it were my client - if only to see what happens with them. I don't work for AIG, but I consider them to be a reputable company. It appears the primary issue is the trickling effect of the mortgage collapse, but you don't know how much affect this "trickling" will have on the policy-holder.

As a Broker, you represent the client and the company (unlike an agent, who represents only the company, not the client). It's up to you, but if I were in that position with this kind of uncertainty, I would hold off or place elsewhere. Just my two cents on this...

EDIT: Misstated my point in the last paragraph. Corrected.

 

[R. Paul Aguirre]

I just submitted a life app with them today.

It was a Term ROP and they had the best rate.

I am a bit nervous about it.

Let me guess the clients signed yesterday and your cell phone has been off all day right?

 

[HomeService]

I never understood the rop thing, anyhow. Why not just sell whole life or UL or something? Besides, usually the rop rider is quite high, usually, with most companies I have sampled.
Maybe AIG has a cheap rop rider, but most I have seen are quite high.

 

[moonlightandmargaritas]

As a Broker, you represent the client, not the company (unlike an agent, who represents the company, not the client).

You may want to bone up on the "laws of agency" in most states (including Tennessee, I believe).