|AIG TO OFFER MANAGEMENT LIABILITY INSURANCE PROGRAM TO NEW YORK STOCK EXCHANGE LISTED COMPANIES|
NEW YORK, August 26, 1998 - American International Group, Inc. (AIG) has announced that its member companies will offer a risk management and insurance program developed exclusively for New York Stock Exchange (NYSE) listed companies.|
The Global Management Protection Program (GMPP) provides insurance and financial protection that addresses the management liability exposures facing publicly-traded companies. NYSE-listed companies can choose from a number of insurance products including Directors, Officers and Corporate Liability, Employment Practices Liability, Corporate Crime and ERISA Liability.* Insurance coverages in the GMPP are available with limits of liability of up to $100 million. GMPP program participants also have protection against cancellation or non-renewal.
GMPP participants also have access to a dedicated Mergers & Acquisitions unit. The M&A unit will provide sophisticated insurance solutions to assist NYSE-listed companies by minimizing potential liabilities impeding the completion of M&A transactions.
The Directors, Officers and Corporate Liability insurance policy offered in the GMPP is designed to address worldwide risks, underwritten in accordance with the indigenous laws and regulations of foreign countries. GMPP participants obtaining the Global Directors and Officers coverage will benefit from access to AIG's network of offices in approximately 130 countries and jurisdictions, the most extensive worldwide network of any insurance organization. Coverage for the Foreign Corrupt Practices Act, including coverage for non-indemnifiable fines and penalties against directors and officers with no individual deductible, is available as an endorsement to the Global Directors and Officers coverage. Companies are generally prohibited from indemnifying individuals for FCPA fines imposed upon them.
GMPP participants may receive a number of loss prevention services to help insureds avoid management liability claims and mitigate losses. CrisisFundSM, an endorsement to the Directors, Officers and Corporate Liability coverage, provides up to $50,000 in fees to retain crisis communications services related to the management of a covered crisis event that could impact a company's stock price. Employment CrisisFundSM, an endorsement to Employment Practices Liability coverage, pays up to $25,000 in fees for the services of an employment crisis management firm. Also available is EPL PakSM, a package of employment practices loss mitigation products, including a CD-rom, and legal services. GMPP participants are also entitled to premium credit to pay for selected corporate governance seminars.
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“Effective corporate management and sound insurance protection go hand in hand with successful capital formation worldwide,” said Catherine R. Kinney, Group Executive Vice President, New York Stock Exchange, Inc. "The New York Stock Exchange continually searches for new opportunities, such as the Global Management Protection Program, to improve its services for listed companies."
“We currently have significant insurance relationships with NYSE-listed companies and look forward to expanding our product and services offerings with the Global Management Protection Program,” said Kristian P. Moor, AIG Executive Vice President, Domestic General Insurance. “The Global Management Protection Program is a way to help NYSE-listed companies obtain sound insurance protection, strengthen their balance sheet strategies, and ultimately, advance the interests of their enterprises and those who invest in them.”
For more information on the Global Management Protection Program, NYSE-listed companies should contact their insurance broker or AIG at 800/892-1834, or e-mail at email@example.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 NYSE, the world's leading equities market, has more than 3,100 listed companies representing a total global market capitalization of nearly $13 trillion. The growing roster of NYSE-listed companies is comprised of large, mid-size and smaller companies in all sectors.
* 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.