I should have been more specific. The $200 billion was in reference to the essentially unsecured TARP money. The policyholder liabilities are protected by the various state regulations and are deemed safe. It is that fact that keeps it out of bounds from Fed seizure in the event of bankruptcy. In short the policyholders are protected and the taxpayers are screwed. I guess that would make the policyholders the next public enemy #1.
Uh oh. Now you've gone and given them their next target. I'm going to empty my desk of all my AIG policies and burn them under the cover of the darkness of night.