AIG and New Jersey authorities reach auto agreement

NEW YORK - American International Insurance Company of New Jersey (AIIC NJ), an AIG subsidiary, has reached an agreement with the State of New Jersey Department of Banking and Insurance that will enable the unit to maintain its presence in the New Jersey auto insurance market. Under a Consent Order approved by Donald Bryan, Acting Commissioner of the New Jersey Department of Banking and Insurance, AIIC NJ will suspend its withdrawal plan for a minimum of two years. AIIC NJ may reactivate the withdrawal plan by advising the Commissioner of its intention to do so on or before the expiration of this two-year period. The Consent Order also grants AIIC NJ an 8.9% rate increase. AIG member company American International Insurance Company of Delaware (AIIC Delaware) will also receive a certificate of authority to underwrite auto insurance in New Jersey.