The Minnesota Department of Commerce fined the Dwight Swanstrom Co. of Duluth, Minn., $3,000 and licensed insurance agent Gregory Brisky $2,000 after he placed an ad soliciting business by capitalizing on AIG's financial straits, the Insurance Journal reported.
The U.S. Federal Reserve opened an $85 billion line of credit for AIG last month in a highly publicized government rescue. The Minnesota Department of Commerce has since reassured the public several times that AIG is financial solvent, the Journal reported.
The ads called out directly to AIG policyholders. "AIG policyholders, nervous about the current situation with your insurance company? We have alternatives. Don't be risky, insure with Brisky," the newspaper ad said.
Both the agency and the insurance agent who placed the ad have waived their rights to a hearing on the matter, the Insurance Journal reported.