The two-day rollercoaster of speculation on whether insurance giant AIG would be in business much longer ended with a government bailout to the tune of more than $85 billion Tuesday night, Sept. 16.

However, that didn’t end the apprehension of people who have insurance policies – such as commercial vehicle insurance policies – through American International Group Inc.

“There’s been such worldwide press about it, will the everyday person on the street have the same confidence about it?” asked Howard Green, executive director of Besso UK, a wholesaler of the truck insurance offered by Missouri-based Owner-Operator Independent Drivers Association.

“Individual people like you and I … can find out about 10 companies online and get different quotes. Will people still have the same confidence in them and take their paper? That remains to be seen.”

In the short-term, the two-year, $85 billion lifeline thrown out to AIG by the Federal Reserve in exchange for nearly an 80 percent ownership means most customers will see business as usual. But for how long is not clear.

Given AIG’s weak financial health – because of the downward spiral of the home market – it will be forced to reorganize its business, which will mean sales of some subsidiaries and reorganization of others.

Only time will tell what effect this will have on insurance rates in the long term.

While AIG has its financial fingers in just about everyone’s business – which has caused a lot of the hand-wringing during the past few days – it is in no way connected to commercial vehicle insurance offered by OOIDA to its members.

Chairman Henry A. Waxman announced on Wednesday, Sept. 17, that the House Oversight Committee has scheduled two days of hearings, Oct. 6-7, to examine the regulatory mistakes and financial excesses that led to the bankruptcy filing by Lehman Brothers and the government bailout of AIG.

– Compiled by Land Line staff