$100 million insurance program introduced to protect investors in all sizes of money-market funds.NEW YORK--(BUSINESS WIRE)--Aug. 26, 1996--A unique new insurance program that will provide investors in all sizes of money-market funds with up to $100 million of protection against defaults by issuers of securities held by the funds was announced today by Marsh & McLennan, Incorporated, the world's leading insurance broker. "We expect this coverage will gain significant acceptance by money-market funds, given the type of protection it provides to investors," said Michael C. Nicolai, Senior Vice President of Marsh & McLennan's FINPRO practice. The new program is sufficiently flexible to cover the entire range of money market funds, from the smallest to the largest, that meet the underwriting criteria, he noted. It is expected to be attractive not only to distributors of mutual funds, but also to other institutions offering money-market funds, such as commercial banks and investment-banking firms. Thomas P. Ruggieri, a Managing Director of Marsh & McLennan, said the new coverage will make money-market funds more appealing to investors by reducing a major fund risk. "This program will enable money-market funds to assure shareholders that they are insured against losses, up to the limits of the policies, due to the default of an issuer or issuers of securities held by the fund," he said. "While other factors can adversely affect the value of the funds, this default is, by far, the single most serious exposure they face." Marsh & McLennan said the insurance is underwritten by major domestic insurers with the highest financial ratings available. The limit of each policy may be as high as $100 million. The deductible may be set at the level desired by the fund. Marsh & McLennan, Incorporated is the world's leading risk management and insurance broking Bro´king a. 1. Of or pertaining to a broker or brokers, or to brokerage. Redeem from broking pawn the blemished crown. - Shak. firm. It is a major subsidiary of Marsh & McLennan Companies, Inc., whose other professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. include reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. broking, insurance program management, consulting and investment management. Marsh & McLennan Companies' stock (ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors : MMC See MultiMediaCard and Microsoft Management Console. ) is listed on the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Chicago, Pacific, and London stock exchanges London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. . CONTACT: Marsh & McLennan, Incorporated 1166 Avenue of the Americas, New York, NY 10036-2774 Tom Elliott, 212-345-4052 |
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