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AMERICAN INTERNATIONAL GROUP ANNOUNCES EXECUTIVE DEFERRED INCOME INSURANCE

 AMERICAN INTERNATIONAL GROUP ANNOUNCES
 EXECUTIVE DEFERRED INCOME INSURANCE
 NEW YORK, March 30 /PRNewswire/ -- American International Group, Inc. (NYSE: AIG) announced today a new product that protects executives from the loss of retirement benefits that may result from corporate bankruptcy or other types of repudiation.
 The product, Executive Deferred Income Insurance (EDII), provides insurance against losses for executives who participate in non-qualified deferred compensation plans.
 Commenting on EDII, William D. Smith, president, National Union Fire Insurance Company of Pittsburgh, a member company of AIG, said, "There are any number of circumstances that can place retirement benefits at risk, including the growing number of corporate bankruptcies in this country. When this happens, many senior executives are in a position to lose a substantial portion of their retirement income, the non-qualified portion."
 While benefits are paid to retirees from many sources, the higher the compensation, the greater the percentage of retirement benefits that usually come from non-qualified plans. Such plans are not federally insured and often are an unfunded agreement between a company and a senior executive. Since, in an unfunded plan, assets set aside to meet plan liabilities remain the employer's property and are subject to the claims of the employer's general creditors, they often leave executives at risk should their company file for bankruptcy, or, for other reasons, refuse to pay promised benefits.
 "A key strength of this insurance is that the executive is the named insured. The policy is in the executive's name. The limit of liability is based on each individual's circumstances. That's one of the ways it's custom designed to meet personal needs," said Smith.
 EDII is available through AIG's Executive Products Group, which offers insurance products specifically designed for the needs of top executives. For more information about EDII and the Executive Products Group, call 212-770-7800.
 AIG is the leading U.S.-based international insurance organization and the largest underwriter of commercial and industrial insurance in the United States. Its member companies write property, casualty, marine, life and financial services insurance in approximately 130 countries and jurisdictions, and are engaged in a range of financial services businesses. American International Group, Inc.'s common stock is listed on the New York Stock Exchange, as well as the stock exchanges in London, Paris, Switzerland and Tokyo.
 -0- 3/30/92
 /CONTACT: Michael Forman of American International Group, 212-770-3144/
 (AIG) CO: American International Group Inc. ST: New York IN: INS SU: PDT


CK -- NY055 -- 2866 03/30/92 11:54 EST
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Publication:PR Newswire
Date:Mar 30, 1992
Words:411
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