Dear Valued Customer,  

The Federal Reserve reversed its position Tuesday night and agreed to bail-out American International Group (AIG) with an 85 Billion Dollar loan (at an approximate 11% interest rate) by way of warrants that can be converted into common stock which gives the government 79.9% ownership of AIG.  All AIG assets are being pledged as security.  AIG expects to pay back this money from its operations and if need be, from the sale of its assets, i.e. insurance companies. 

WHAT DOES THIS ACTION MEAN TO YOU, THE AIG INSURANCE POLICYHOLDER?  

A.      Your AIG policy will remain in full force and effect; claims will be paid in accordance with policy terms and AIG says business will go on as usual.

B.      AIG will sell off some of their assets including insurance companies and if they do, this should not negatively affect any policyholders.

C.      Kornreich-NIA will continue to carefully monitor AIG and their financial stability; your renewal policy will be carefully compared with other competitive, financially sound insurance carriers and we will advise you at renewal time of your options.

Kornreich-NIA as an independent insurance brokerage firm has many, many insurance carriers available. Most importantly, we represent you.  Kornreich-NIA will continue to look out for your best interests.    We continue, as always, to monitor new business ideas, policy forms, pricing, and coverage's.  We will assist you in everyway possible, fulfilling your insurance needs.  If you have any suggestions, recommendations, or thoughts about how we can help you preserve your assets, don’t hesitate to call your representative here at Kornreich-NIA.  Thank you for your continued patronage.

Very truly yours,

Paul L. Gross

Chairman