AIG Subsidiary Suspends Withdrawal Plan From New Jersey Auto Insurance Market.Business & Insurance Editors NEW YORK--(BUSINESS WIRE)--Dec. 19, 2001 American International Insurance Company of New Jersey (AIIC AIIC Association des Infirmières et Infirmiers du Canada (Canadian Nurses Association) AIIC Association Internationale des Interprètes de Conférence (International Association of Conference Interpreters) NJ), a subsidiary of American International Group
American International Group, Inc. (AIG) (NYSE: AIG; TYO: 8685 ) is a major American insurance corporation based in New York City. , Inc. (AIG AIG addressee indicator group (US DoD) AIG American International Group, Inc AiG Answers in Genesis (religious group in defense of Scripture) AIG Artificial Intelligence Group AIG Australian Industry Group ), announced that it has reached an agreement with the State of New Jersey Department of Banking and Insurance that will enable AIIC NJ to maintain its presence in the New Jersey auto insurance market. Under a Consent Order approved by Donald Bryan Donald Bryan is the former Acting Commissioner of Banking and Insurance in New Jersey. A career employee of his department, served as Director of the Division of Insurance from 1999 to 2006, where he served two separate stints as acting commissioner. , Acting Commissioner of the New Jersey Department of Banking and Insurance, AIIC NJ will suspend its withdrawal plan for a minimum of two years. AIIC NJ may reactivate re·ac·ti·vate v. 1. To make active again. 2. To restore the ability to function or the effectiveness of. re·ac the withdrawal plan by advising the Commissioner of its intention to do so on or before the expiration of this two-year period. The Consent Order also grants AIIC NJ an 8.9 percent rate increase. Additionally, AIG member company American International Insurance Company of Delaware (AIIC Delaware) will receive a certificate of authority to underwrite auto insurance in New Jersey. Under the consent order, AIIC Delaware will write all new business, and up to 25 percent of AIIC NJ's existing business will be transferred to AIIC Delaware. The transferred business will be comprised of policyholders meeting certain high-risk characteristics. The combined rate effect of these changes is roughly equivalent to the Administrative Law administrative law, law governing the powers and processes of administrative agencies. The term is sometimes used also of law (i.e., rules, regulations) developed by agencies in the course of their operation. Judge's decision rendered in July of 2001. Commenting on the Order, Robert Sandler, AIG Executive Vice President said, "The Consent Order affirms our contention that our rates were inadequate and that a significant rate increase was necessary, while also offering a solution that addresses the challenges of underwriting high-risk business in a `take-all-comers' environment. "The process required to achieve this agreement also underscores the extraordinary lengths to which insurers must go to achieve a justifiable rate increase. It is our hope that the implementation of the terms of this Order in combination with the full implementation of the AICRA AICRA Auto Insurance Cost Reduction Act of 1998 (New Jersey) (Automobile Insurance Cost Reduction Act) reforms, the adoption of the expedited rate filing procedures and substantive rate regulatory reform Regulatory Reform concerns improvements to the quality of government regulation. At the international level, the "OECD Regulatory Reform Programme is aimed at helping governments improve regulatory quality -- that is, reforming regulations that raise unnecessary obstacles to will enable AIIC of New Jersey and AIIC of Delaware to participate in a competitive automobile insurance market free from the damaging political intrusions of the past." AIG is the leading U.S.-based international insurance and financial services organization and the largest underwriter of commercial and industrial insurance in the United States. Its member companies write a wide range of commercial, personal and life insurance products through a variety of distribution channels in approximately 130 countries and jurisdictions throughout the world. AIG's global businesses also include financial services and asset management, including aircraft leasing, financial products, trading and market making, consumer finance, institutional, retail and direct investment fund asset management, real estate investment management, and retirement savings products. American International Group, Inc.'s common stock is listed on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. , as well as the stock exchanges in London, Paris, Switzerland and Tokyo. |
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