{"id":21533,"date":"2024-03-13T21:31:19","date_gmt":"2024-03-13T21:31:19","guid":{"rendered":"https:\/\/www.insurancejournal.com\/?p=764764"},"modified":"2024-03-13T21:31:19","modified_gmt":"2024-03-13T21:31:19","slug":"chubbs-greenberg-defends-issuing-appeal-bond-to-trump-we-dont-take-sides","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2024\/03\/13\/chubbs-greenberg-defends-issuing-appeal-bond-to-trump-we-dont-take-sides\/","title":{"rendered":"Chubb\u2019s Greenberg Defends Issuing Appeal Bond to Trump: \u2018We Don\u2019t Take Sides\u2019"},"content":{"rendered":"<ul class=\"nav nav-tabs tabs tabs-entry\">\n<li class=\"active\"><a href=\"https:\/\/www.insurancejournal.com\/news\/national\/2024\/03\/13\/764764.htm\">Article<\/a><\/li>\n<li><a href=\"https:\/\/www.insurancejournal.com\/news\/national\/2024\/03\/13\/764764.htm?comments\" rel=\"nofollow\">0 Comments<\/a><\/li>\n<\/ul>\n<div class=\"article-content clearfix\">\n<p>Chubb CEO Evan Greenberg, recognizing the criticism swirling around his company\u2019s involvement in recently providing Donald Trump with a $91.6 million appeal bond, penned a letter to explain.<\/p>\n<p>\u201cWhen Chubb issues an appeal bond, it isn\u2019t making judgements about the claims, even when the claims involve reprehensible conduct,\u201d Greenberg said in the letter to brokers, clients, and investors.<\/p>\n<div class=\"bzn bzn-sized bzn-intext\">\n<ins data-revive-zoneid=\"79\" data-revive-block=\"1\" data-revive-id=\"36eb7c2bd3daa932a43cc2a8ffbed3a9\"><\/ins> <\/div>\n<p>\u201cI realize how polarizing and emotional this case and the defendant are and how easy it would be for Chubb to just say no,\u201d Greenberg added. \u201cHowever, we support the rule of law and our role in it. We considered this the right thing to do and we frankly left our personal feelings aside.\u201d<\/p>\n<figure id=\"attachment_761313\" aria-describedby=\"caption-attachment-761313\" class=\"wp-caption alignleft\"><a href=\"https:\/\/www.insurancejournal.com\/app\/uploads\/2024\/02\/greenberg-evan.jpg\"><img loading=\"lazy\" fetchpriority=\"high\" decoding=\"async\" class=\"size-medium wp-image-761313\" src=\"https:\/\/www.insurancejournal.com\/app\/uploads\/2024\/02\/greenberg-evan-300x300.jpg\" alt=\"greenberg-evan\" width=\"300\" height=\"300\" srcset=\"https:\/\/www.insurancejournal.com\/app\/uploads\/2024\/02\/greenberg-evan-300x300.jpg 300w, https:\/\/www.insurancejournal.com\/app\/uploads\/2024\/02\/greenberg-evan-580x580.jpg 580w, https:\/\/www.insurancejournal.com\/app\/uploads\/2024\/02\/greenberg-evan-150x150.jpg 150w, https:\/\/www.insurancejournal.com\/app\/uploads\/2024\/02\/greenberg-evan.jpg 586w\" sizes=\"(max-width: 300px) 100vw, 300px\"><\/a><figcaption id=\"caption-attachment-761313\" class=\"wp-caption-text\">Evan G. Greenberg<\/figcaption><\/figure>\n<p>The surety bond contract was <a href=\"https:\/\/www.insurancejournal.com\/news\/national\/2024\/03\/08\/764218.htm\" target=\"_blank\" rel=\"noopener\">issued by Chubb\u2019s Federal Insurance Co<\/a>. and signed by Trump early last week. It allows the former president to appeal the $83.3 million verdict against him in the E. Jean Carroll defamation case. In January, a federal jury in Manhattan awarded the sum of a $65 million punitive award and $18.3 million in compensatory damages to Carroll <a href=\"https:\/\/www.insurancejournal.com\/news\/east\/2024\/01\/28\/757507.htm\" target=\"_blank\" rel=\"noopener\">after the trial<\/a>.<\/p>\n<p>Federal will pay if Trump loses the appeal or fails to pay. Greenberg said Carroll\u2014as the plaintiff typically does\u2014approved the terms of the bond before the court accepted it, and she now gets the \u201cpeace of mind that payment is certain if the judgement is upheld.\u201d<\/p>\n<p>The bond, Greenberg added, \u201cserves the important purpose of facilitating the legal process, providing the certainty that court and plaintiffs require after an adverse trial court decision.\u201d<\/p>\n<p>Providing a bond \u201chas nothing to do with the underlying merits or with favoring any of the parties in the case,\u201d Greenberg said. \u201cAs a surety, we don\u2019t take sides, it would be wrong for us to do so, and we are in no way supporting the defendant.\u201d<\/p>\n<p>Greenberg said the bond is fully collateralized\u2014corroborating <a href=\"https:\/\/www.insurancejournal.com\/news\/national\/2024\/03\/08\/764218.htm\" target=\"_blank\" rel=\"noopener\">comments from Nick Newton<\/a>, senior vice president at Assured Partners and immediate past president of the National Association of Surety Bond Producers, in an earlier report. Newton added that premium is typically 1-2%.<\/p>\n<div class=\"bzn bzn-sized bzn-intext-2\">\n<ins data-revive-zoneid=\"162\" data-revive-block=\"1\" data-revive-id=\"36eb7c2bd3daa932a43cc2a8ffbed3a9\"><\/ins> <\/div>\n<p>The chief executive said that if the bond is called, \u201cChubb takes the collateral, which is intended to make us whole.\u201d<\/p>\n<p>\u201cWe hardly support or subsidize defendants or take \u2018one for the team,&#8217;\u201d he said, addressing criticism that in some way the bond was a favor for Greenberg getting appointed by Trump in 2018 to the Advisory Committee for Trade Policy and Negotiations. Greenberg continued to hold the position until about a year ago. After rioters stormed the Capitol in January 2020, Greenberg said citizens had \u201ca responsibility to <a href=\"https:\/\/www.insurancejournal.com\/news\/national\/2021\/01\/07\/596545.htm\" target=\"_blank\" rel=\"noopener\">speak out against and condemn<\/a> in the strongest terms the violence and display of demagoguery we witnessed.\u201d<\/p>\n<p>JD Weisbrot, president and chief underwriting officer at JW Surety Bonds, told Insurance Journal that Trump, other than providing 100% collateral in liquid assets, may have provided a letter of credit from an approved bank.<\/p>\n<p>\u201cDonald Trump is always talking about how rich he is [but] he has been caught multiple times exaggerating the size of his buildings, his entire net worth, and Lord only knows what else,\u201d Weisbrot said. \u201cThe insurance company would not be willing to take a $90 million risk simply because he is an ex-president. They most likely received 100% collateral in the form of cash or an irrevocable letter of credit.\u201d<\/p>\n<p>Trump may have also had to provide personal guarantees to Chubb\u2019s Federal Insurance.<\/p>\n<p>\u201cIf an individual person and not a corporation has been sued and lost an appeal, they would need to post collateral, and they would need to provide personal indemnification holding the surety company who issued the bond harmless from all losses and expenses whatsoever,\u201d Weisbrot said. \u201cWe can presume that Donald Trump also needed to provide a similar personal guarantee as well as the collateral to secure this bond security.\u201d<\/p>\n<p class=\"tagtag\"> <span class=\"tagtag\">Topics<\/span> <a href=\"https:\/\/www.insurancejournal.com\/company\/chubb\/\" class=\"btn btn-sm btn-primary tagtag\">Chubb<\/a> <\/p>\n<\/p><\/div>\n<div class=\"article-poll\" data-post=\"764764\">\n<div class=\"article-poll-vote\">\n<p>Was this article valuable?<\/p>\n<\/p><\/div>\n<div class=\"article-poll-feedback voted-no\">\n<form class=\"feedback-form\">\n<p>Thank you! 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Please tell us what you liked about it.<\/p>\n<p> <textarea placeholder=\"Enter your feedback...\"><\/textarea> <button type=\"submit\" class=\"submit\" disabled>Submit<\/button> <button class=\"cancel\">No Thanks<\/button> <\/form>\n<\/p><\/div>\n<div class=\"article-poll-more-articles\">\n<p class=\"thank-you-text\">Here are more articles you may enjoy.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"author-byline clearfix\">\n<div class=\"author-byline-img\"> <img width=\"150\" height=\"200\" src=\"https:\/\/www.insurancejournal.com\/app\/uploads\/2022\/01\/headshot-scaled.jpg\" class=\"attachment-200x200 size-200x200 wp-post-image\" alt decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/www.insurancejournal.com\/app\/uploads\/2022\/01\/headshot-scaled.jpg 1920w, https:\/\/www.insurancejournal.com\/app\/uploads\/2022\/01\/headshot-225x300.jpg 225w, https:\/\/www.insurancejournal.com\/app\/uploads\/2022\/01\/headshot-435x580.jpg 435w, https:\/\/www.insurancejournal.com\/app\/uploads\/2022\/01\/headshot-768x1024.jpg 768w, https:\/\/www.insurancejournal.com\/app\/uploads\/2022\/01\/headshot-1152x1536.jpg 1152w, https:\/\/www.insurancejournal.com\/app\/uploads\/2022\/01\/headshot-1536x2048.jpg 1536w\" sizes=\"(max-width: 150px) 100vw, 150px\"> <\/div>\n<div class=\"author-byline-content\">\n<h4 class=\"author-byline-name\"> <small>Written By<\/small> Chad Hemenway <\/h4>\n<p class=\"author-byline-bio\"> Chad is National News Editor at Insurance Journal. He has been covering the insurance industry since 2007, reporting on trends and coverage in most lines of insurance as well as natural catastrophes, modeling, regulation, legislation, and litigation. Chad can be reached at chemenway@wellsmedia.com <\/p>\n<div class=\"author-byline-posts\">\n<h5>Latest Posts:<\/h5>\n<\/p><\/div>\n<p> <a href=\"https:\/\/www.insurancejournal.com\/author\/chad-hemenway\/\" class=\"author-byline-more\"> More From Author <i class=\"fas fa-caret-right\"><\/i> <\/a> <\/div>\n<\/p><\/div>\n<div class=\"subscribe-banner subscribe-banner-in-content-2\">\n<div class=\"content\">\n<h4>The most important insurance news,in your inbox every business day.<\/h4>\n<p>Get the insurance industry&#8217;s trusted newsletter<\/p>\n<\/p><\/div>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Article 0 Comments Chubb CEO Evan Greenberg, recognizing the criticism swirling around his company\u2019s involvement in recently providing Donald Trump with a $91.6 million appeal bond, penned a letter to explain. \u201cWhen Chubb issues&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":21534,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[638,551,2,1,639,640],"jetpack_featured_media_url":"https:\/\/blog.lifeinsurance-orleans.ca\/wp-content\/uploads\/2024\/03\/chubbs-greenberg-defends-issuing-appeal-bond-to-trump-we-dont-take-sides.jpg","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/21533"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=21533"}],"version-history":[{"count":0,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/21533\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media\/21534"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=21533"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=21533"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=21533"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}