|AIG'S AMERICAN INTERNATIONAL COMPANIES OFFER PRODUCT RECALL INSURANCE|
NEW YORK, August 12, 1998 – American International Group, Inc. (AIG) has announced that the American International Companies have introduced RecallResponseSM, a product recall insurance policy that provides coverage for first-party recall expenses and third-party liability.*|
RecallResponse covers an insured's recall expenses related to the notification of the incident, product shipping, disposal of the product, rental of warehousing/storage space, the hiring of additional personnel and payment of overtime to current employees. Additionally, coverage can be endorsed to cover the cost of repair, replacement or refund of the product. Insureds may also choose third-party liability coverage which covers certain third-party compensatory damages claims resulting from an insured product recall. RecallResponse is available as a coverage part to a commercial general liability policy or as a stand-alone policy.
The policy covers product recall incidents in which the use or consumption of an insured's product has resulted in bodily injury or property damage or poses an actual and imminent danger of resulting in bodily injury or property damage. Coverage is triggered by the earlier of the initial oral or written publication of the product recall, or the insured's initial notice to the insurer. Either event must take place during the policy period.
The RecallResponse policy provides separate limits of liability for product recall expenses (up to $5 million) and third-party liability coverage (up to $10 million).
For information about RecallResponse contact Vince DeConti at 212/770-1007 or Maureen Bell at 212/770-1276 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.