Mr. Rusbuldt continued that the loan is "welcome news in the face of the escalating concern about the potential impact of AIG's economic challenges, which has dominated the news for days, fueling speculation about the future of the company and debate about the public policy of a government bailout."

He said AIG's "complex corporate structure" has resulted in confusion by some about the "distinction between the parent company's financial strength and the ability of its insurance businesses to meet their obligations to policyholders."

"The loan provides AIG with needed liquidity, averting a crisis that could have set off a cascade of repercussions across the financial markets," he said, noting that AIG's insurance businesses "are separate units or subsidiaries that are restricted from transferring assets to related entities without regulatory approval to facilitate their ability to pay claims."

Ken Crerar, president of the Council of Insurance Agents and Brokers, also welcomed the Fed's move.

"We applaud efforts to help stabilize financial markets, and particularly AIG's holding company, in order to ensure that going forward, the company's promises to our members' clients are kept and protected," Mr. Crerar said. "AIG has been an important and substantial player in the insurance market, and whatever happens, the first concern of our members is their clients."

AIA's Mr. Racicot said that policymakers need to "look for solutions that avoid the potential for market crises and consider more effective ways of regulating the financial services sector and protecting consumers without compromising the efficiency benefits that free and open markets provide."

He added that for highly-diversified financial services conglomerates operating in multiple regions of the country and globally, "it makes little sense to continue to single out insurance for regulation on a piecemeal basis at the state level. It makes a great deal more sense for a federal regulator to monitor systemic risk and exercise group-wide supervision on a national basis to ensure safety and soundness."