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NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA. LAUNCHES IDL MAX INDEPENDENT DIRECTOR LIABILITY INSURANCE PROGRAM; 'SIDE A' EXCESS AND DIC COVERAGE PROVIDES BROAD PROTECTION FOR DIRECTORS IN NON-INDEMNIFIABLE CLAIMS
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NEW YORK--June 6, 2005--National Union Fire Insurance Company of Pittsburgh, Pa.(R) (National Union), a member company of American International Group, Inc. (AIG), today announced the launch of IDL MAX(SM), a comprehensive non-indemnifiable loss ("Side-A") excess liability insurance program enhanced with Difference In Conditions (DIC) coverage for independent directors of publicly-traded corporations.

IDL MAX also offers independent directors the opportunity to add an excess layer of non-indemnifiable loss coverage solely dedicated to protecting them when traditional D&O insurance cannot.

"In the past few years, securities cases and settlement values have increased at an alarming rate," said John Keogh, President and Chief Executive Officer, National Union. "IDL MAX provides directors with the comfort of knowing that their individual assets are protected, allowing them to focus on fulfilling their fiduciary duties. And since IDL MAX is designed to provide coverage for only those independent directors scheduled on the policy, the limits cannot be diminished by corporate liabilities or by non-insured executives who may be accused of wrongful conduct."

In addition to offering excess Side-A and DIC coverage, IDL MAX also drops down to provide first-dollar coverage in circumstances when the corporation refuses to indemnify the independent director and the traditional D&O policy does not respond due to:

  • Threatened or actual rescission of the underlying insurance policy;
  • Wrongful refusal to pay by any underlying carrier;
  • Financial insolvency of any underlying carrier;
  • Denial of coverage by any underlying carrier due to terms and conditions not contained in the more favorable IDL MAX policy (DIC coverage); or
  • Any underlying insurance policy being "frozen" because it is alleged to be part of the debtor's bankruptcy estate.

IDL MAX contains limited exclusions as compared with traditional D&O policies. It can be underwritten in conjunction with other D&O policies issued by AIG member companies or on a stand-alone basis.* For more information on IDL MAX, please contact your local National Union representative, e-mail managementliability@aig.com or visit www.aignationalunion.com.

American International Group, Inc. (AIG) is the world's leading international insurance and financial services organization, with operations in more than 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 services 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 services 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 and ArcaEx, as well as the stock exchanges in London, Paris, Switzerland and Tokyo.

* Insurance is underwritten by member companies of American International Group, Inc., and is subject to underwriting review and approval. The description 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 states. Non-insurance products may be provided through independent third parties.

CONTACT:
American International Group, Inc.
Joe Norton
212-770-3144