Doug Hauer Tom Clark Mintz Levin Arthur J. Gallagher Bruce - - PowerPoint PPT Presentation

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No legal advice is being provided; the material and comments discussed are intended to provide general information only

INSURANCE PRODUCTS IN EB-5

Mark Freitas

Mark Edwards Partners

Doug Hauer

Mintz Levin

David Souders

Todd Associates

PRESENTED BY:

Tom Clark

Arthur J. Gallagher

Bruce Rosetto

Greenberg Traurig

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No legal advice is being provided; the material and comments discussed are intended to provide general information only

INSURANCE PRODUCTS IN EB-5

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Discussion

• I-526 Insurance
• D&O Insurance

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No legal advice is being provided; the material and comments discussed are intended to provide general information only

INSURANCE PRODUCTS IN EB-5

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I-526 Insurance

Benefits

• Enables early release of funds from escrow
• Provides an alternative to bridge financing
• Protects investors during the I-526 adjudication phase

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No legal advice is being provided; the material and comments discussed are intended to provide general information only

INSURANCE PRODUCTS IN EB-5

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Protects against any I-526 denial with the following exclusions:

• Fraud
• Changes to EB-5 Program that causes denials
• Force Major
• Insolvency

I-526 Insurance

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No legal advice is being provided; the material and comments discussed are intended to provide general information only

INSURANCE PRODUCTS IN EB-5

5

What is coverage criteria?

I-526 Insurance

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No legal advice is being provided; the material and comments discussed are intended to provide general information only

INSURANCE PRODUCTS IN EB-5

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How is the investor’s partnership interest dealt with?

I-526 Insurance

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No legal advice is being provided; the material and comments discussed are intended to provide general information only

INSURANCE PRODUCTS IN EB-5

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Disclosures

• How many policies sold to date and how many claims paid to

date?

I-526 Insurance

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No legal advice is being provided; the material and comments discussed are intended to provide general information only

INSURANCE PRODUCTS IN EB-5

D&O and E&O Insurance

Who is protected?

• Indemnifies the entity and its officers and directors

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No legal advice is being provided; the material and comments discussed are intended to provide general information only

INSURANCE PRODUCTS IN EB-5

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Protects against:

• Regulatory or legal proceedings
• Lawsuits brought by a disgruntled investor

NOTE: Exposure in these situations can be enormous

D&O and E&O Insurance

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No legal advice is being provided; the material and comments discussed are intended to provide general information only

INSURANCE PRODUCTS IN EB-5

Covers the responsibilities described in the offering, such as:

• Mismanagement of funds
• Misstatements
• Negligence
• Misrepresentation of offering documents
• Breach of duty
• Failure to supervise 3rd parties
• Failure to provide due diligence

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D&O and E&O Insurance

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No legal advice is being provided; the material and comments discussed are intended to provide general information only

INSURANCE PRODUCTS IN EB-5

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Indemnification against claims alleging wrongful acts:

• Legal expenses in defending against claims
• Settlements or adverse judgement amounts

D&O and E&O Insurance

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No legal advice is being provided; the material and comments discussed are intended to provide general information only

INSURANCE PRODUCTS IN EB-5

Does not cover

• Fraud

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D&O and E&O Insurance

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No legal advice is being provided; the material and comments discussed are intended to provide general information only

INSURANCE PRODUCTS IN EB-5

How does carrier measure their risk exposure and thereby establish the cost of coverage?

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D&O and E&O Insurance