Taking premium and not paying claims would be a bad long-term strategy, would it not? Brokers would refuse to place client's business with AIG, customers would flee, etc...
Given the size of AIG's business, and the fact that it continues to grow, it would seem that the "not paying claims" plan is not in effect.
That's not to say that the woods aren't full of people who submitted unmeritorious or uncovered claims and were told "no". But I would assume that "no" would be the right answer in those situations, from the shareholder perspective.
If AIG doesn't pay claims, and still writes the volume of business it does, you should adjust your sentiment from "strong sell" to "strong buy" because they're apparently sending all of their revenue to the bottom line!
Except you're incredibly wrong. AIG does pay claims - lots of them. So what is your personal grudge? What do you feel you got stiffed on?