|AIG'S NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA. INTRODUCES MAXIMUM A-SIDE EXCESS COVERAGE FOR DIRECTORS AND OFFICERS|
NEW YORK, May 12, 2003 -- National Union Fire Insurance Company of Pittsburgh, Pa.(R) (National Union), a member company of American International Group, Inc. (AIG), has introduced Maximum A-Side Excess Insurance(SM) (MAX), a "Side A" excess non-indemnifiable loss policy with a Difference In Conditions provision that provides comprehensive protection for directors and officers.
Side A coverage is pure directors and officers (D&O) coverage. It offers protection for claims in which the company is not permitted or required to provide indemnity. MAX goes beyond traditional A-Side coverage by providing indemnification even when the insured's company fails to meet its indemnity obligations.(1) Coverage is available with limits of liability up to $25 million and can be written either in excess of an American International Companies' or another carrier's D&O policy.
MAX is a non-rescindable policy that provides follow-form Side A coverage(2) and becomes the primary insurance in the event of exhaustion of the underlying carriers' limits of liability. A Difference In Conditions provision provides first-dollar protection in certain non-indemnifiable claims when the insured is unable to access D&O coverage due to rescission of the underlying policies, wrongful refusal and/or financial inability of the underlying carriers to indemnify insured persons, or denial of coverage by underlying carriers due to terms and conditions inconsistent with MAX.
"Acting as a director for a public company is an important and worthy responsibility, but it is also a position that comes with substantial risk," said John Keogh, president and chief operating officer, National Union. "Arguably, directors face more risk now than ever before; in fact, a recent survey reports that close to 50% of directors have actually turned down a new board position because the risk is too great.(3) MAX, in tandem with National Union's wide array of D&O liability solutions, provides executives with comprehensive coverage options that not only protect employee and non-employee executives' personal assets, but also helps to create the business conditions required for improved corporate governance and fiscal responsibility across the enterprise."
In addition to Maximum A-Side Excess, National Union has recently introduced IDL Premier(SM), a corporate solution that provides independent directors with an extra layer of non-rescindable protection; ExecSecure(SM), enhanced "Side A" excess D&O coverage for all executives; and D&O First(SM), primary D&O liability coverage.
National Union has developed a list of 10 questions for directors and officers to ask their respective companies to find out if an existing D&O policy adequately protects their personal assets. The questionnaire can be found at www.aig.com/directorsandofficers.
More information on National Union's array of directors and officers liability coverages can be found by contacting your insurance broker, a local American International Companies' office or e-mailing firstname.lastname@example.org.
AIG is the world's leading international insurance and financial services organization, with operations in approximately 130 countries and jurisdictions. AIG member companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In the United States, AIG companies are the largest underwriters of commercial and industrial insurance, and AIG American General is a top-ranked life insurer. AIG's global businesses also include financial services, retirement savings and asset management. AIG's financial services businesses include aircraft leasing, financial products, trading and market making. AIG's growing global consumer finance business is led in the United States by American General Finance. AIG also has one of the largest U.S. retirement savings businesses through AIG SunAmerica and AIG VALIC, and is a leader in asset management for the individual and institutional markets, with specialized investment management capabilities in equities, fixed income, alternative investments and real estate. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in London, Paris, Switzerland and Tokyo.
Insurance underwritten by member companies of American International Group, Inc. The description of the policies herein is a summary only. It does not include all terms, conditions and exclusions of the policies described. Please refer to the actual policies for complete details of coverage and exclusions. Coverage may not be available in all jurisdictions.
(1) Non-indemnifiable loss coverage is subject to the insured person's cooperation with the insurer's subrogation rights against the company. (2) Subject to certain non-follow provisions. (3) Korn Ferry/Corporate Board Member Magazine survey, November 2002.
AIG, New York Andrew Silver, 212/770-3141