Chubb's New Political Risk Coverage Includes Unique Features.WARREN, N.J.--(BUSINESS WIRE)--Aug. 1, 1997--The member insurers of the Chubb Group of Insurance Companies have introduced a new political risk insurance program to help their customers protect their investments in foreign operations from governmental actions and political upheaval. The program's key component, the Expropriation The taking of private property for public use or in the public interest. The taking of U.S. industry situated in a foreign country, by a foreign government. Expropriation is the act of a government taking private property; Eminent Domain is the legal term describing the Insurance Policy (EIP (1) (Enterprise Information Portal) See corporate portal. (2) (Extended Instruction Pointer) The program counter on x86 CPUs. ), provides insurance against confiscation confiscation In law, the act of seizing property without compensation and submitting it to the public treasury. Illegal items such as narcotics or firearms, or profits from the sale of illegal items, may be confiscated by the police. Additionally, government action (e.g. , expropriation, nationalization nationalization, acquisition and operation by a country of business enterprises formerly owned and operated by private individuals or corporations. State or local authorities have traditionally taken private property for such public purposes as the construction of or sequestration sequestration In law, a writ authorizing a law-enforcement official to take into custody the property of a defendant in order to enforce a judgment or to preserve the property until a judgment is rendered. of a company's overseas physical or financial assets Financial assets Claims on real assets. by a foreign government, as well as the willful destruction of property. Depending on the insured's needs, several supplemental coverages may be purchased, including two unique Chubb enhancements for third-party blockade or quarantine and forced project relocation. Third-party blockade or quarantine coverage helps protect insured assets if a third-party sovereign nation uses or threatens military force to prevent the insured from removing insured assets from the host country. Forced project relocation reimburses the insured for extraordinary expenses incurred, up to 50% of the limit of liability for expropriatory conduct, when an insured is forced to reestablish a foreign enterprise outside the host country. "Chubb is providing a comprehensive solution to many of the uncertainties of operating a business abroad," said Pat Skold, who is spearheading the political risk effort for Chubb. "Supported by our multinational network, the new political risk program will enable Chubb to help its middle market customers manage the new exposures they face as they increasingly take advantage of opportunities to establish facilities abroad and expand into foreign markets." Chubb can provide up to $25 million in policy limits per insured per country. In addition to third-party blockade and forced project relocation, other supplemental EIP coverages include civil war and insurrection, deprivation, selective discrimination, forced abandonment and forced divestiture. The policy can be tailored to include permanent investments, mobile assets or inventory within the scope of coverage. Indemnity of up to 100% is available. The policy can be written for a period of up to three years, except in the case of civil war and insurrection, which carries a policy period of one year. Member insurers of the Chubb Group of Insurance Companies form a multi-billion dollar organization providing property and casualty insurance for personal and commercial customers worldwide through 5,000 independent agents and brokers. Chubb's global network includes branches and affiliates throughout North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Europe, Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , Asia, and Australia. CONTACT: Chubb & Son Inc., Warren Donna Lovre, 908/903-2107 or Gilbert Whitney & Johns Mark Schussel, 201/386-1776, ext. 249 |
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