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CHUBB UNIT SETTLES INSURANCE COVERAGE LITIGATION

 CHUBB UNIT SETTLES INSURANCE COVERAGE LITIGATION
 WARREN, N.J., March 30 /PRNewswire/ -- The Chubb Corporation


(NYSE: CB) announced today that its subsidiary, Pacific Indemnity Company, has reached a new agreement with Fibreboard Corporation (AMEX: FBD) to settle asbestos-related general liability insurance coverage litigation.
 This settlement agreement, which replaces a March 1991 agreement between Pacific Indemnity and Fibreboard, sets upper limits on the amounts payable by Pacific Indemnity and fully resolves all claims between the parties.
 Management believes the reserves established for this settlement are adequate and that the settlement will not have any material adverse effect on future earnings.
 Under this settlement, Pacific Indemnity will make available to Fibreboard over the next 12 months $30 million for the payment of certain asbestos-related bodily injury and property damage liability claims and defense costs. While the settlement does not require court approval, any additional amounts to be paid under it depend on how the courts, where Pacific Indemnity expects to prevail, decide the terms and scope of insurance coverage that may be available to Fibreboard. Either Fibreboard will be obligated to repay to Pacific Indemnity any portion of the $30 million that it has drawn down as well as the $20 million previously paid during 1991, or Pacific Indemnity will make additional payments of $80 million or $105 million to an irrevocable trust established for the payment of claims.
 Under certain circumstances, Fibreboard will attempt to secure additional judicial action to bar third party claims against Pacific Indemnity. If Fibreboard is successful, Pacific Indemnity will make further payments to the trust of either $140 million or $225 million.
 Any payments beyond the $30 million available to Fibreboard over the next 12 months depend on the court decisions regarding the terms and scope of insurance coverage and are unlikely to be made before 1994 or 1995.
 Management said it is pleased with the manner in which this matter has been resolved and believes this agreement is in the best interest of the corporation.
 -0- 3/30/92
 /CONTACT: Gail E. Devlin, 908-580-3245, or Glenn A. Montgomery, 908-580-2365, both of Chubb/
 (CB FBD) CO: Chubb Corporation; Pacific Indemnity Company;
 Fibreboard Corporation ST: New Jersey IN: INS SU:


GK -- NY014 -- 2701 03/30/92 08:34 EST
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No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Mar 30, 1992
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