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respect to the anticipated risk or exposure to AIG, the letter
stated:
The Shippers Interest Program is to be 100% reinsured
to Union International/Hamilton, Bermuda. Union will
then retrocede this risk to other insurers. This,
therefore, would leave the shippers interest issuing
carrier in a "fronting" capacity with essentially no
risk or exposure to loss under the program.
Finally, the letter requested that AIG submit a proposal on
petitioner's Shippers Interest Program setting forth:
a. The fronting/administration fee it would require as the
issuing carrier.
b. Estimated premium taxes applicable under this program.
c. Its acceptance of Union International as the program
reinsurer.
d. Acceptance and confirmation of * * * [petitioner] as
the authorized program administrator with total claim
settlement authority.
e. The specific documentation required to be given to
shippers electing coverage under this program.
On April 27, 1983, Mr. Corde sent a letter to Mr. Robert
Sargent of Travelers Insurance Co. (Travelers) discussing
petitioner's excess value program and requested that Travelers
submit a proposal for the excess value program. On May 20, 1983,
Mr. Sargent sent a letter to Mr. Corde outlining an alternative
for petitioner.
In a letter dated May 7, 1983, to Mr. Corde, Mr. Smetana
presented AIGRM's proposal for an excess value program. In the
letter, AIGRM proposed that it would issue a single master
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