|AIG’S AMERICAN INTERNATIONAL COMPANIES® OFFER MANAGEMENT LIABILITY INSURANCE FOR INITIAL PUBLIC OFFERINGS|
NEW YORK, November 9, 1998 – American International Group, Inc. (AIG) has announced that the American International Companies have introduced IPO GoldSM, a directors, officers and corporate liability insurance program for Initial Public Offerings (IPOs) that includes special coverage features, corporate governance programs and loss prevention strategies.*|
IPO Gold covers corporations, their directors, officers and employees for IPO and post-IPO exposures, including allegations of fraud and mismanagement, inaccurate financial/operational projections, changes in company strategy, inadequate or inaccurate disclosure of information, and improper accounting practices. Additionally, coverage is provided for criminal, civil, administrative, regulatory and arbitration investigations and proceedings against directors and officers; Securities and Exchange Commission investigations; and protection in the event of the company's bankruptcy. IPO Gold also provides coverage for other public offerings, (e.g., secondary offering) and for pre-IPO acts.
Coverage can be extended to cover the insured's own indemnification agreements with their IPO underwriters, and can pay covered losses directly to the underwriters in the event of the insured's financial insolvency. Insureds may also cover others commonly named as codefendants in IPO securities claims, including selling and controlling shareholders, attorneys, accountants and experts.
IPO Gold also offers insureds value-added services available by endorsement, including credits toward selected corporate governance educational seminars. Also available to eligible insureds as an endorsement to IPO Gold is CrisisFundSM, which provides up to $50,000 toward the fees of a public relations firm in helping an insured manage a covered crisis event. Coverage is triggered when the insured's management determines that a covered crisis event is reasonably likely to have an immediate and material negative impact on the insured's stock price. Additionally, Year 2000 claims coverage is available by endorsement that includes securities claims and third-party claims coverage. The endorsement also 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.
IPO Gold is offered as part of the Management Risk Protection Program®, a NASDAQ sponsored package of insurance products and services offered to NASDAQ-listed companies. IPO Gold is also part of the Global Management Protection Program, a risk management and insurance program developed exclusively for New York Stock Exchange (NYSE) listed companies.
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Limits of liability are available up to $50 million.
For more information about IPO Gold, contact Robin Kestenbaum at 212/458-1716.
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 provided by member companies of American International Group, Inc.