AIG: Where does it stand, and how am I affected?

The Insurance Information Institute says AIG ranks in the top 10 of insurance companies in fixed annuities sold through banks. Fixed annuities guarantee the principal and fixed payments to the buyer for a specified period of time, usually until death. AIG also ranks among the top writers of auto insurance, commercial insurance and life insurance. It led the nation in fixed annuities sold through banks, writing more than $5 billion in 2007. AIG also led in commercial insurance, writing $24 billion in policies in 2007.

Here are answers to key questions about where AIG's insurance businesses stand.

What is going to happen to the insurance businesses owned by AIG?

The infusion of $85 billion into AIG offers financial stability so the company will have time to decide which assets or business segments it should sell and to whom. It hasn't been disclosed whether the insurance segment, or portions of it, will be sold. The company released a statement Tuesday evening that said: "Policyholders of AIG companies around the world can rest assured that AIG's commitments will continue to be honored."

Analysts believe that insurance policyholders are safe for now, said Marc Steinberg of A.M. Best, one of the nation's main insurance rating companies.

"We believe the insurance subsidiary to be financially sound and continues to be sound today," said Joyce Sharaf, also with A.M. Best. She said Wednesday that AIG holds major insurance businesses that "are enviable franchises that could be sold in whole or in part."

Insurance regulators in New York, who have regulatory oversight over New York-based AIG, and the National Assn. of Insurance Commissioners said the company's insurance operations remain solvent and can pay claims.

Insurance companies in the United States are regulated by government agencies established by the states in which they are based.

Should I be worried if I have health or life insurance policies with AIG? What if I have a retirement annuity?