The Republican lawsuit targets reinsurance that helps insurance companies provide universal coverage without accounting for pre-existing conditions.
American International Group Inc. said it is in talks to sell a 90 percent stake in ILFC its aircraft-leasing company to a group of Chinese investors.
The insurance giant, based in New York, said in a statement Friday talks were under way on the possible sale of International Lease Finance Corp., based in Los Angeles.
The statement said AIG "has consistently stated that ILFC is a non-core asset."
AIG has been trying to find a buyer for ILFC since 2008, when AIG when it was temporarily placed under the control of the U.S. government during the financial meltdown, the Los Angeles Times reported.
ILFC -- one of the largest aircraft leasing firms in the world -- owns 925 aircraft and leases planes most major airlines, the newspaper said.
"Any possible transaction involving ILFC would be subject to required regulatory approvals, including those in the U.S. and China, and customary closing conditions," the statement said.
In its most recent SEC filing, ILFC reported $339.7 million in net income from January September. The company reported a $736.4 million loss during the same period of 2011.
AIG said it was in talks with a group of potential buyers that included New China Trust Co., New China Life Insurance Co. and P3 Investments Ltd., as well as China Aviation Industrial Fund.