Political Risk Insurance

Chubb Group of Insurance Companiesany%> has increased its political risk per risk capacity to US$50 million and the policy term to five years for investment risks and has expanded its product offerings. Investment risks include confiscation, expropriation and nationalization. New products available include contract frustration, wrongful calling of guarantee, and non-repossession of assets.

Contract frustration insurance helps protect against contractual default that leads to financial loss caused by an act of government or by an agent of government. Limits are available up to $20 million per transaction, with a policy term of up to three years, the company says.

The wrongful calling of a guarantee product applies to loss where stand-by letters of credit that have been posted as a guarantee of performance are called due to acts of government. Limits are available up to $20 million per transaction, with a policy period of up to three years.

Non-repossession of assets can be tailored to insure equipment or aircraft. The insurance applies if a company is unable to repossess an asset in accordance with a lease agreement or mortgage due to acts of government. Limits are available up to $50 million per insured per country, with a policy period of up to five years.

For more information, contact The Chubb Corporation, 15 Mountain View Road, Warren, NJ 07059. Telephone: 908-903-2000. Fax: 908-903-2027.