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California Insurance Commissioner Steve Poizner and Washington Commissioner Mike Kreidler reaffirmed that insurance companies owned by ÌìÃÀÍøÕ¾´«Ã½´«Ã½ continue to have the risk-based capital needed to operateand warned policyholders of ÌìÃÀÍøÕ¾´«Ã½´«Ã½-owned insurance companies to beware of possible cancellation costs if they are approached about switching insurance companies.

“Don’t worry and don’t make any rash decisions if you have a policy issued by an ÌìÃÀÍøÕ¾´«Ã½´«Ã½ insurance company,” Kreidler said. “All of ÌìÃÀÍøÕ¾´«Ã½´«Ã½’s insurance companies are strong and solvent.”

“While I encourage consumers to shop around when their insurance policies come up for renewal, they should be wary of incurring fees if they switch in the middle of a policy,” said Commissioner Poizner. “My department is carefully monitoring the situation and all of ÌìÃÀÍøÕ¾´«Ã½´«Ã½’s insurance companies continue to meet the requirements to operate in the state.

“If you have a life insurance or annuity policy and someone tells you to replace it because of the troubles at ÌìÃÀÍøÕ¾´«Ã½´«Ã½’s parent company and you have additional questions, you should call the 800-927-HELP. Replacing or liquidating a life insurance policy or an annuity can have heavy hidden costs and tax consequences. Also, there may be a cancellation penalty if you cancel your automobile or homeowners policy.”

As Commissioner Poizner said earlier this month, ÌìÃÀÍøÕ¾´«Ã½´«Ã½’s financial difficulties stem from the parent company and other non-insurance affiliates, not its subsidiary insurance companies. The ÌìÃÀÍøÕ¾´«Ã½´«Ã½-affiliated insurance companies remain solid.

Source: CDI, OIC

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