AIG offers new D&O coverage. (Property/Casualty: Marketplace).
"With escalating securities litigation, heightened scrutiny of directors' actions in the wake of high profile corporate wrongdoing, and new regulations that increase board members' liability exposures, corporations require effective insurance protection to attract and retain successful, highly skilled individuals as corporate directors," said John Keogh, AIG vice president, domestic general insurance, and president, National Union Fire Insurance Company of Pittsburgh.
Limits of liability for the policy, IDL Premier, are available up to $25 million, and are not shared with inside directors and officers or the corporate entity IDL Premier provides coverage if the primary and excess D&O policies do not respond as the result of cancellation, the breach of a nonseverable warranty or when a claim is excluded. IDL Premier is available only if the primary D&O policy is underwritten by an AIG member company. To obtain coverage, the corporation is expected to meet a number of corporate governance guidelines, including maintaining a board of directors with at least half the membership noncompany officers. Also, audit, compensation and nominating committees must be comprised solely of nonemployee directors.
AIG also has introduced ExecSecure, a nonrescindable, excess D&O coverage for nonindemnifiable claims against all directors and officers, that protects all directors and officers. Limits of liability are available up to $25 million. ExecSecure is available only if the primary D&O policy is underwritten by an AIG member company.
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|Title Annotation:||American International Group, directors and officers|
|Article Type:||Brief Article|
|Date:||Nov 1, 2002|
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