|AIG ENVIRONMENTAL NOW OFFERS SECURED CREDITOR IMPAIRED PROPERTY INSURANCE PROGRAM TO FLORIDA BANKERS ASSOCIATION MEMBERS|
NEW YORK, June 8, 1999 - American International Group, Inc. (AIG) has announced that AIG EnvironmentalSM, a division of the American International Companies®, has introduced an environmental insurance program for members of the Florida Bankers Association (FBA).*
Endorsed by BancServ, Inc., a wholly-owned subsidiary of Florida Bankers Association, the environmental insurance program features Secured Creditor Impaired Property* insurance, a policy that covers commercial lenders for losses arising from a borrower's default on a commercial real estate loan due to pollution conditions on an insured property. In this event, the policy may pay the lesser of either the outstanding balance (which indemnifies the insured) or cleanup costs (which will be paid on behalf of the insured). For this coverage to apply, on-site pollution conditions must first be discovered by the insured during the policy period. The policy also covers the insured for third-party bodily injury, third-party property damage, and cleanup costs resulting from on- and off-site pollution conditions.
The Secured Creditor Impaired Property policy can be customized for individual bank members' lending practices and strategies to target commercial real estate markets. Branch and correspondent banks can also be covered under the same policy as the member bank.
If the bank has a securitization strategy - where bank loans are converted into marketable securities for sale to investors - the policy can be modified to address rating-agency requirements. Lenders who serve as conduits for pool and single-site securitization can include environmental insurance in their presentation to rating agencies for underwriting.
Participating FBA members will have access to a dedicated underwriting resource group, as well as educational resources on insurance and risk management techniques in commercial real estate transactions. Additionally, AIG Environmental's staff offers input to membership meetings through presentations and educational materials on environmental insurance and risk management techniques.
The BancServ-Endorsed Environmental Insurance program is available to FBA member banks with limits of liability up to $100 million.
For more information about the BancServ-Endorsed Environmental Insurance program, call 1-800-348-4314, department code SCBA99P 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 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.
*Insurance provided by the member companies of American International Group, Inc. The above described coverage may not be available in all states, and the above description 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.