Will AIG Insurance still pay out on a National Union Fire Insurance Company of Pittsburgh claim?

UPDATED: Apr 11, 2018

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UPDATED: Apr 11, 2018Fact Checked

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Asked April 11, 2018

1 Answer


When it comes to an insurance company paying out a claim, the fact of the matter is they should be financially stable to do so. When you sign an insurance contract with a company, then you have a list of conditions you need to follow, but the insurance company also has a list of obligations they have to follow as well. One of the main duties of an insured is to pay their premiums, and as long as the policy is in good standing, then the insurance company is responsible for paying out the claim.

When it comes to the insurance company's responsibility, they have to pay a claim because they are contractually bound to do so. In addition, even if a company were to go bankrupt, become insoluble, or even fail to pay claims, then they would still have to deal with the insurance department in the state of Pennsylvania. Basically, even if the company didn't want to pay the claim, there is still a proper set of channels you can go to in order to make them fulfill their obligation. And, even if they were unable to pay, then there is still a chance that the state department has a means of paying in case the company ever went bankrupt.

Finally, if the National Union Fire Insurance Company of Pittsburgh was purchased by or absorbed by AIG Insurance, then AIG insurance should have more than enough funds and premiums available to make good on the payment of claims of a smaller company. The long story short is, you have to go back to the original contract which is the insurance policy. If you have followed the conditions, then you are entitled to your claim payments. Even if the company has been purchased by someone else, then that entity should now be the ones ultimately responsible for paying you.

Answered April 18, 2018 by mossy17

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