|AIG'S AMERICAN INTERNATIONAL UNDERWRITERS INTRODUCES CONSUMER PRODUCT RECALL INSURANCE|
NEW YORK, February 25, 1999 - American International Underwriters (AIU), the international property-casualty organization of American International Group, Inc. (AIG), has announced that its Crisis Management Division has introduced Crisis Recall, a policy that provides coverage for product recall costs for consumer products manufacturers. "With the number of product recalls rapidly increasing over the last decade consumers are increasingly aware of product quality issues and recall management is a significant issue for consumer product companies," said Jean McDermott-Lucey, Vice President, AIU Crisis Management Division. "Crisis Recall Insurance covers recall related expenses and provides truly proactive crisis management with a strong emphasis on pre-incident planning."
The United States Consumer Product Safety Commission (CPSC) recalled 362 products affecting over 67.5 million product units in 1997.
Crisis Recall is designed for manufacturers of finished products, such as consumer durables, white goods, children's products and toys, clothing, office equipment, and sporting goods. The policy provides coverage for losses associated with a product recall, including communications; transportation; warehousing; overtime and expenses for employees; product disposal; costs to replace or restore the recalled product; redistribution of a recalled or restored product; and costs to replace a recalled product that has been destroyed, is unfit for resale, or unfit for its original use with a different product of similar value.
Additionally, Crisis Recall also covers the fees of Kroll O'Gara Associates, the leading international crisis management and investigative consulting firm, and the public relations firm of Hill & Knowlton, Inc. for services provided related to a covered event. No deductible applies to consultant costs.
Crisis Recall complements the AIU Crisis Management Division's existing line of specialty coverages, such as Contaminated Products Insurance (covering malicious product tampering and accidental contamination), and Kidnap and Ransom/Extortion Insurance.
The policy is available on a worldwide basis with limits of liability of up to $10,000,000.
For more information on Crisis Recall Insurance contact 800/950-8773 in the U.S. or 212/770-2704.
AIG is the leading U.S.-based international insurance organization and among the largest underwriters 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 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 coverage 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.