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 company.
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.
The Dwight Swanstroom Co. and Brisky agreed to an informal deposition on the matter and waived the right to a hearing.
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.”
“These enforcement actions give us another opportunity to assure Minnesota consumers that AIG’s insurance companies, regulated by the states, are solvent and financially strong,” said Insurance Commissioner Glenn Wilson. “If someone tells you to replace any policy because an AIG insurance company is in trouble and may not be able to pay your claim, that is not only untrue, it could be against the law, and we will take action like we did today.”
Officials also said the state commerce department is investigating several other potential violations of the law relating to the misrepresentation of insurance and annuity products because of the turbulent economic times.
Source: Minnesota Department of Commerce
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