I work in the insurance industry, and specifically the insurance group I work for sells AIG products.
I am an IT guy, so I went and talked to my friend (who is the senior manager for Life & Health with our insurance group) and the following is a direct quote from him: "They would be well served to worry about something else... this is not a problem".
Here's why...
First, every state in the union has a "guarantor" association for insurance companies... this is basically a large pool of funds that are used to "backstop" insurance companies. These procedures vary from state to state, but Missouri (where I live) is typical... there is up to 100K worth of insurance is guaranteed by the state the insurance was issued in... it is kind of like an FDIC of insurance companies, which is why the states keep such close control of the companies (this is up to 300K on annuities, by the way, although that has nothing to do with DAN). The states fund this by charging the various insurance companies in the state a fee as a cost of doing business in that state (which is one of the reasons you often see companies exclude states in policies... although there are other reasons as well). Further, these state associations are all part of a national guarantor association which backstops them. If you check your policies, you will see this spelled out somewhere in them. You won't ever see this "advertised" by any companies, because the guarantor associations specifically prohibit this program from being used as a sales tool.
Second, the insurance parts of AIG are sound and making money. In the (now) extremely unlikely event that AIG fails (since the government isn't going to let it fail, obviously), the insurance portions of the companies would be sold off to competitors quickly and easily... there are a lot of people who would be willing to buy profitable business units at fire sale prices.
Third, it isn't much money and frankly you can't get the coverage anywhere else. It is kind of an "all or nothing" type of a deal, since AIG is the only player in the field (at least the only one I know of)...
