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The AIG Effect on States

Cash flow problems have nearly crippled mega-insurer American International Group in recent weeks, forcing the company to take an $85 billion loan from the federal government. Now, attention remains focused on how AIG's problems will affect insurers in individual states. Recently, the top insurance regulators from Kentucky, Mississippi, Oregon, Arizona and Connecticut sat down with Insurance Journal's Ken St. Onge to discuss that impact. Their assessments? Insurers in their states are solvent, so the impact won't be big.

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