Deal Point: A bank has completed is credit analysis of a prospective borrower and is comfortable with the business and credit fundamentals. The prospective borrower has recently received a positive decision in a lawsuit brought against. The plaintiff in the lawsuit sought significant damages. The plaintiff is appealing this decision. The bank has a significant concern about the financial impact on the prospective borrower of any reversal of the positive judicial opinion on appeal. As such, it is unwilling to proceed with the loan in the absence of certainty regarding the outcome of the appeal.

Transactional Insurance Solution: The borrower purchases an Appeal Risk Insurance policy protecting it against a catastrophic award against it in the event that the plaintiff’s appeal is successful.