INSURANCE PRODUCTS IN EB-5 David Souders Mark Freitas Todd Associates Mark Edwards Partners Doug Hauer Tom Clark Mintz Levin Arthur J. Gallagher Bruce Rosetto Greenberg Traurig PRESENTED BY: 1 ‹ › No legal advice is being provided; the material and comments discussed are intended to provide general information only
INSURANCE PRODUCTS IN EB-5 Discussion • I-526 Insurance • D&O Insurance 2 ‹ › No legal advice is being provided; the material and comments discussed are intended to provide general information only
INSURANCE PRODUCTS IN EB-5 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 3 ‹ › No legal advice is being provided; the material and comments discussed are intended to provide general information only
INSURANCE PRODUCTS IN EB-5 I-526 Insurance Protects against any I-526 denial with the following exclusions: • Fraud • Changes to EB-5 Program that causes denials • Force Major • Insolvency 4 ‹ › No legal advice is being provided; the material and comments discussed are intended to provide general information only
INSURANCE PRODUCTS IN EB-5 I-526 Insurance What is coverage criteria? 5 ‹ › No legal advice is being provided; the material and comments discussed are intended to provide general information only
INSURANCE PRODUCTS IN EB-5 I-526 Insurance How is the investor’s partnership interest dealt with? 6 ‹ › No legal advice is being provided; the material and comments discussed are intended to provide general information only
INSURANCE PRODUCTS IN EB-5 I-526 Insurance Disclosures • How many policies sold to date and how many claims paid to date? 7 ‹ › 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 8 ‹ › 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 Protects against: • Regulatory or legal proceedings • Lawsuits brought by a disgruntled investor NOTE: Exposure in these situations can be enormous 9 ‹ › 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 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 10 ‹ › 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 Indemnification against claims alleging wrongful acts: • Legal expenses in defending against claims • Settlements or adverse judgement amounts 11 ‹ › 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 Does not cover • Fraud 12 ‹ › 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 How does carrier measure their risk exposure and thereby establish the cost of coverage? 13 ‹ › No legal advice is being provided; the material and comments discussed are intended to provide general information only
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