|AIG’S AMERICAN INTERNATIONAL COMPANIES INTRODUCE NEW DIRECTORS, OFFICERS AND CORPORATE LIABILITY POLICY WITH YEAR 2000 COVERAGE|
NEW YORK, April 23, 1998 – American International Group, Inc. (AIG) has announced that the American International Companies have introduced D&O GoldSM, a new Directors, Officers and Corporate Liability policy that includes coverage for Year 2000 exposures and incorporates over 40 additional enhancements addressing securities claims, bankruptcy, employment practices liability, pollution liability and other risks.*|
“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 Kristian P. Moor, President of National Union Fire Insurance Company of Pittsburgh, Pa., an AIG member company. “The continued assertion of federal securities claims against individual directors and officers, as well as the increased exposure in state courts and in non-securities areas, including employment practices related litigation, necessitates additional protection from the D&O policy.”
D&O Gold is the first Directors, Officers and Corporate Liability insurance policy to directly address claims against directors and officers related to an insured company's failure to achieve or properly disclose Year 2000 compliance. The policy covers, subject to its specific terms, the corporation and its directors and officers for securities, customer contract and other third party claims related to Year 2000 compliance. Prior to coverage being granted, insureds are required to fill out a 10 question application regarding Year 2000 exposure and compliance efforts. Additionally, there is no fraud exclusion for Year 2000 securities disclosure claims arising out of corporate statements written or approved by any American International Companies' D&O Panel Counsel law firm.
Additionally, D&O Gold features Year 2000 CrisisFundSM, which provides up to $10,000 to pay the fees of a public relations firm to manage the insured's Year 2000-related disclosure communications.
D&O Gold includes a number of enhancements designed specifically to protect the personal assets of insured directors and officers. These features include coverage for pollution related claims when the directors and officers cannot be indemnified by the company. The policy also provides coverage for punitive damages in a securities claim for both the corporation and individual directors and officers. Additionally, express coverage is granted for the directors and officers of the Debtor-in-Possession in the event the company files for protection under Chapter 11 of the U.S. Bankruptcy Code and coverage is also provided for claims made against the directors and officers by the Bankruptcy Trustee or Examiner.
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AIG'S American International Companies Introduce D&O Gold... April 23, 1998 Page Two
The policy also provides coverage for civil, criminal and administrative government investigations, including SEC and grand jury investigations, against directors and officers post “target letter” or equivalent document and coverage for civil, criminal, administrative, regulatory and arbitration proceedings against insureds.
D&O Gold also includes Employment Practices Liability Insurance (EPLI) that covers directors and officers for a broad range of employment practices violations, including discrimination or sexual harassment claims brought by non-employees and wrongful termination, sexual harassment, discrimination, retaliation and employment misrepresentation violations, among other employment practices claims, brought by employees. Coverage does not exclude libel, slander or emotional distress for these claims.
D&O Gold is available with limits of liability of $50 million. For more information on D&O Gold, corporations should contact their local insurance broker, agent or the American International Companies at 212/458-1420 or http://access.aig.com.
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. Insurance is underwritten by member companies of American International Group, Inc.