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AIG in financial crisis, will this effect my Workers’ Compensation benefits under the Defense Base Act? September 15, 2008

Posted by Aaron Walter in Uncategorized.
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On news of a potential downgrading of its debt rating, AIG’s stock fell 31% Friday and another 50% as of lunch time on Monday September 15. AIG has asked the U.S. Federal Reserve Bank to help raise $40 billion to avoid such a downgrading and is attempting to sell off its domestic automobile businesses and aircraft leasing business.

AIG insurers approximately 90% of Defense Base Act Workers’ Compensation claims. The questions we have been asked several times today are – will this effect my weekly benefits? Will AIG keep paying my doctors?

The answer is that there should not be any immediate disruption in these benefits.  It appears that AIG should have enough cash to continue to pay claims. In fact, the division handling these claims has made record profits  for AIG over the past few years.