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Tully: would they stop selling for AIG? No. Definitely not. Would they stop pushing AIG so hard? Maybe. These guys, just like me, will get multiple quotes that are very similar. How do you differentiate if there's little difference between price and coverage? Maybe the commission is different, maybe there's a trip like this or maybe the underwriter is a good friend. All are valid reasons and don't harm the consumer one iota.
One other thing that people have backwards: if AIG (the parent) had gone down, little would have changed with the insurance operations. They were all separately capitalized from each other and the parent. The one entity that wrote the credit coverage went down, and the parent is partially on the hook for that, hence the problem. But if AIG declared bankruptcy, National Union (one of their largest carriers) would have and could have continued writing coverand paying claims. The insurance operations are profitable and most are covered by state guarantee funds if they go out of business. Not that it was ever really a possibility.
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