The Minnesota Department of Commerce has taken action against a Duluth insurance agent and agency for publishing a newspaper advertisement that solicited business from current policyholders of American International Group (AIG) insurers by questioning the financial health of the AIG parent.
The department has repeatedly affirmed the financial solvency of AIG’s insurance companies, despite the troubles associated with the parent company.
Gregory Brisky, a licensed insurance agent working for the Dwight Swanstrom Co. of Duluth, agreed to pay a $2,000 fine for placing the advertisement. The Swanstrom agency agreed to a $3,000 fine.
Officials alleged that Brisky and the Swanstrom agency did not take any action to verify the financial condition of any specific AIG insurance company before placing the advertisement and attempted to induce AIG policyholders to replace their insurance. It is against Minnesota law to make any misleading representation as to the financial condition of any insurer.
The Swanstrom Agency ad said: “AIG policyholders, nervous about the current situation with your insurance company? We have alternatives. Don’t be risky, insure with Brisky.”
Source: Minnesota Department of Commerce
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