|AIG ENVIRONMENTAL TO OFFER INSURANCE COVERAGES THROUGH MASSACHUSETTS BROWNFIELD REDEVELOPMENT PROGRAM|
NEW YORK, December 14, 1999 – American International Group, Inc. (AIG) has announced that AIG Environmental, a division of the American International Companies, will provide environmental coverages in conjunction with the Commonwealth of Massachusetts' Brownfield Redevelopment Access to Capital (BRAC) program.
BRAC legislation supports private financing for the remediation and redevelopment of contaminated property. The program is administered by the Massachusetts Business Redevelopment Corporation, a private corporation that provides financing and financial services to growing companies.
AIG Environmental will offer companies participating in the BRAC program environmental insurance coverages designed to insure developers for escalating cleanup costs or unknown legal liabilities and cover lenders for loan defaults on properties with environmental conditions. Coverages offered through the BRAC program are intended to address the environmental liabilities related to brownfield redevelopment, helping promote private financing.
“Lenders and developers often fear their involvement in brownfield redevelopment projects will ultimately result in responsibility for the clean up of contamination they did not create, which makes it difficult to obtain the capital necessary to develop these properties,” said Joseph Boren, President, AIG Environmental. “The availability of insurance coverages through the BRAC program can help ease these concerns and facilitate the financing and efficient completion of remediation projects.”
Coverages available through the BRAC program include the Commonwealth of Massachusetts Brownfield Redevelopment Access to Capital Secured Creditor Impaired Property Policy (MassBusiness Lender Policy), and the Commonwealth of Massachusetts Brownfield Redevelopment Access to Capital Pollution Legal Liability and Cleanup Cost Cap Policy (MassBusiness Borrower/Developer Policy). The coverages, underwritten by AIG member companies, are tailored to the needs of developers and lenders and BRAC program participation specifications, and also address Massachusetts' “Brownfield Acts” legislation and Licensed Site Professional program.
The MassBusiness Lender Policy covers commercial lenders for losses arising from a borrower's default on a commercial real estate loan that is secured by an insured property, leasehold or fixed asset. The policy will indemnify the lender for the outstanding balance of the loan if the default is accompanied by pollution conditions on the insured property.
MassBusiness Borrower/Developer Policy provides coverage for cleanup costs that are above the anticipated cost of cleanup; cleanup costs for unknown conditions discovered during cleanup; third-party coverage for cleanup costs, bodily injury and property damage from pre-existing, unknown pollution conditions emanating from the insured site and migrating beyond the boundary of the insured site; business interruption for losses due to pollution conditions outside the planned cleanup; and legal defense coverage for claims arising from pollution conditions arising outside the planned cleanup.
For more information, please contact 800/348-4314 or http://access.aig.com.
AIG Environmental, writing business through member companies of AIG, is the leading provider of environmental insurance products and services.
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 lines 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 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.