Environmental Warranty to underwrite policies.Environmental Warranty, Inc., an environmental insurance brokerage firm, announced that it will underwrite environmental risk transfer policies with Chubb's Department of Financial Institutions, an operating unit operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon within the Chubb Group of Insurance Companies. Environmental Warranty will market and underwrite Chubb's collateral impairment and environmental site liability policy, which protects lending institutions from financial loss and liability resulting from loan defaults and contaminated contaminated, v 1. made radioactive by the addition of small quantities of radioactive material. 2. made contaminated by adding infective or radiographic materials. 3. an infective surface or object. discovered on the real estate collateral. This new arrangement is in response to lenders' increasing demand for an environmental insurance policy that expedites and simplifies commercial real estate loan transactions. Lenders are realizing that environmental insurance also solves problems that Phase I environmental site assessment A Phase I Environmental Site Assessment is a report prepared for a real estate holding which identifies potential or existing environmental contamination liabilities. The analysis, often called a Phase I ESA reports cannot, such as transferring future risk over the life of the loan. Moreover, it is widely believed that loans bound for the securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. market for commercial mortgage-backed securities Commercial mortgage-backed securities (CMBS) are a type of bond commonly issued in American security markets. They are a type of Mortgage-backed security which are backed by mortgages on commercial rather than residential real estate. are viewed more favorably by rating agencies when they have environmental insurance coverage. |
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