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Originally Posted by The_Jazz
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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Well when your company as a whole is unprofitable and so large that the US tax payer is literally forced to bail you out trips and perks like these are, if nothing else, poor PR. Least that's how I see it. Kind of hard to say we lost money last year but we'd have lost more if we didn't hand out Super Bowl tickets. It's not that I don't see or understand what you're saying. But now the tax payers own part of that company I think the perks should be more like- 1st prize is a Cadillac, 2nd prize is a set of steak knives, 3rd prize is you're fired.
But I get what you're saying it's trying to draw in business with these perks and the people getting the perks are not employees. Still hard to swallow on my end.
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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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Never say never. My sister-in-law worked for WaMu for 27years. I'm sure she thought they'd never fold either. She recently went to work one day and was handed a box and given some time to clean out her desk. More recently she's been told she can apply for her old job from the new owner... with a 40% pay cut. Given her company 401K lost 65% of it value she'll probably take it. Several people at the top were not offered to apply, they were just given several million dollars. I'm guessing someone else cleaned out and delivered their personal belongings.