|AIG’S AMERICAN INTERNATIONAL COMPANIES OFFER ENHANCED ERISA LIABILITY INSURANCE|
|NEW YORK, May 10, 2001 – American International Group, Inc. (AIG) has announced that the American International Companies has enhanced its ERISA Liability policy to cover more types of benefit plans and to offer broader worldwide coverage for fiduciaries, as well as provide litigation management and loss mitigation support.*|
“The initiatives many companies have taken to support bottom line growth and attract a strong work force, combined with recently expanded protection for plan participants provided for under ERISA and similar foreign regulations, have significantly increased the potential liabilities of fiduciaries,” said John Keogh, President, National Union Fire Insurance Company of Pittsburgh, Pa., an AIG member company. “We believe the enhancements to our ERISA liability policy offer broad, forward looking coverage that better addresses the needs of the marketplace.”
The policy provides coverage for directors, officers, governors, general partners, management committee members, members of the board of managers, sponsor organizations, plans, and employees who may have fiduciary or administrative responsibility for employee benefit plans. The policy also expands as an insured's operations grow, providing automatic coverage for newly acquired subsidiaries.
Additionally, the policy has been enhanced to provide coverage for Cafeteria Plans, Dependent Care Assistance Programs, Fringe Benefit Programs and Voluntary Employees' Benefits Association Plans (VEBAs), in addition to pension and welfare benefit plans, both foreign and domestic, and qualified and non-qualified plans. The policy also protects against lawsuits related to plans that have been considered by company management but not yet created, as well as certain plans inadvertently not reported to the insurer.
The policy also addresses potential managed care fiduciary exposures by incorporating defense cost coverage for bodily injury claims made against insureds.
Coverage is also now available for the Department of Labor's new Fiduciary Correction Program penalties, including coverage for certain expenses associated with making corrections under the program. The policy also includes coverage for certain fees and penalties imposed when an insured moves to correct operational or administrative plan defects under the Internal Revenue Service's voluntary compliance program. Delinquent 5500 filer penalties under a DOL or IRS Delinquent Filer Voluntary Compliance Program are also covered, as are certain penalties under the United Kingdom's Pensions Act 1995.
ERISA Liability Insurance is available with limits of liability of up to $50 million. ERISA Liability insureds have access to the American International Companies' ERISA Panel Counsel, a roster of the nation's top law firms specializing in defending ERISA liability lawsuits that provides insureds with litigation management support. ERISA Liability insureds maintain the absolute right to participate in their defense.
ERISA Liability Insurance is part of the American International Companies' Gold Package, which includes Directors and Officers Liability, Professional Liability, Employment Practices Liability and Crime coverages in combination with unique loss control, litigation management and claim solutions.
For more information about ERISA Liability or the Gold Package, contact an insurance broker, a local American International Companies office or e-mail firstname.lastname@example.org.
AIG is the leading U.S.-based international insurance and financial services organization and the largest underwriter of commercial and industrial insurance in the United States. Its member companies write a wide range of commercial and personal insurance products through a variety of distribution channels in approximately 130 countries and jurisdictions throughout the world. AIG's global businesses also include financial services and asset management, including aircraft leasing, financial products, trading and market making, consumer finance, institutional, retail and direct investment fund asset management, real estate investment management, and retirement savings products. 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 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.