Sixteen and Stronger Than Ever

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Kevin Matthews AIG Environmental Director of
Governmental Relations Washington, DC
202-861-8674 or kevin.matthews_at_aig.com
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Environmental Insurance Policies for Cleanup

• Pollution Legal Liability
• Cleanup Cost Cap

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Pollution Legal Liability (PLL) Select

• PLL Select provides environmental coverage for
• On and off-site pollution conditions for both
  unknown pre-existing and new contamination
• Coverage for known and unknown pollution
  conditions not expected or required to be
  remediated
• Third party bodily injury, property damage
• First party Business Interruption Diminution
  in value due to pollution conditions
• Defense Coverage and
• Cleanup costs from pollution conditions arising
  from pollution releases from
• transported cargo
• non-owned disposal site liability

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Cleanup Cost Cap Program
Covers Remediation Cost Overruns for

• Actual contamination greater than estimated
• Offsite clean-up costs emanating from the covered
  site
• Change orders required by governmental
  authorities
• Clean-up costs arising unknown contamination
  discovered as a result of executing the remedial
  plan

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Cleanup Cost Cap (CCC)

• Cleanup Cost Cap manages the economic risk when
  environmental remediation projects exceed the
  expected costs.
• By capping the cost of cleanup, CCC ensures that
  unexpected costs are not assumed by the property
  owner, investor or other interested party.

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Cleanup Cost Cap

• P
• r
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• p
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• L
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Actual Contamination
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Cleanup Cost Cap
Remedial Plan
New Found Contamination
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Cleanup Cost Cap Program
C O I N S
Cost Overrun Coverage
LIMIT
Self-Insured Retention
Expected Cost
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PLL Select

• PLL Select can be written in conjunction with
  Cleanup Cost Cap or as a separate policy to cover
  liabilities outside the area of the remedial
  action plan . . .

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Known And Unknown Coverage
Unknown
Site Boundaries
Cleanup Cost Cap
Pollution Legal Liability Select
Known
Unknown
Known But Not Actionable
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Partnership with Local Communities

• Create Subsidized Local Government Insurance
  Program
• Insure the Local Government to indemnify
  developers
• Pooling sites - within a community or several
  communities for both public/private development
  (also financial assurance for C/PC)
• Use with entities that have mothballed sites

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Federal Funds for Insurance

• HUD CDBG/BEDI
• US EPA GRANTS
• New Brownfield Law
• 1.5M State Program development grants
• Up to 200m in Grants for FY 2006
• Non-profit entities can apply
• Can use funds to purchase EI
• Can use for petroleum sites
• EDA GRANTS

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Kevin Matthews AIG Environmental Director of
Governmental Relations Washington, DC
202-861-8674 or kevin.matthews_at_aig.com