|AIG’S AMERICAN INTERNATIONAL COMPANIES INTRODUCE NEW MANAGEMENT LIABILITY POLICY|
|NEW YORK, February 25, 2000 – American International Group, Inc. (AIG) has announced that the American International Companies have introduced D&O 2/2000, a new management liability policy that provides enhanced coverage for securities liability, employment practices liability, pollution liability and other management liability risks, broadening current coverages available in the American International Companies' Gold Package. D&O 2/2000 also incorporates a number of new features that specifically address both domestic and international management liability exposures.|
“As the leading provider of management liability insurance, the American International Companies continually anticipate new trends affecting our insureds and develop products to help protect them,” said John Cavoores, President, National Union Fire Insurance Company of Pittsburgh, Pa., an AIG member company. “This new management liability policy builds on the advancements made with our current management liability coverage, and further addresses critical risks such as bankruptcy, the management of securities litigation and corporate crises, as well as diverse organizational structures.”
D&O 2/2000 addresses uncertainty in current D&O coverages that can leave individual insureds without protection in the event the parent company or its subsidiary liquidates or enters into bankruptcy protection. The new bankruptcy feature secures an insured individual's protection. The policy also broadens coverage for all entities of which an insured organization has “Management Control” including corporations, joint ventures and limited liability companies.
In response to its success, CrisisFundSM, which advances funds, pre-claim, to help insureds manage communications during corporate crisis events, has been incorporated into D&O 2/2000, and additionally has been enhanced to be triggered by the potential de-listing of an insured organization's securities. Insureds also benefit from American International Companies' creative loss mitigation solutions which help resolve high-severity litigation, including large-scale shareholder lawsuits.
“As United States-based organizations expand overseas and as foreign laws focus more on corporate governance, many are finding that their international subsidiaries and management are vulnerable to management liability risks that are unique to a foreign market,” adds Cavoores. “In addition to its features for domestic risks, D&O 2/2000 specifically addresses a number of international management liability exposures.”
Insureds will benefit from AIG's worldwide network of member companies who will issue local directors and officers liability policies in foreign countries where legally required or in foreign countries where the insured's securities are listed.
D&O 2/2000 provides coverage for insured executives for suits made by other insured executives and brought outside the United States, Canada or other common law countries and their territories. The policy also applies global coverage to a wider range of individuals, including directors, officers, management committee members, members of the board of governors and other equivalent positions of insured entities.
For more information on D&O 2/2000, contact a broker or the American International Companies local office, Paul Schiavone in New York at 212/458-1418, or http://access.aig.com.
AIG is the leading U.S.-based international insurance organization and the largest underwriter of commercial and industrial insurance in the United States. Its member companies write property, casualty, marine, life and financial services insurance in approximately 130 countries and jurisdictions, and are engaged in a range of financial services and investment management businesses. American International Group, Inc.'s common stock is listed on the New York Stock Exchange, as well as the stock exchanges in London, Paris, Switzerland and Tokyo.
*The above described coverages may not be available in all states and jurisdictions, and the above description thereof is neither a complete description nor a complete list of all terms, conditions and exclusions. Note that certain terms used in the above are defined in the policy. Please see the policy for a complete description of its scope and limitations of coverage. Issuance of coverage is subject to underwriting.