Lexington Insurance Co. has introduced HELP – International Catastrophe, a coverage designed to reimburse colleges and universities for the loss of tuition-related income that results when an enrolled international student withdraws due to a catastrophic event in the student’s home country.
Erik Nikodem, senior vice president and property division executive of Lexington, said that more than 700,000 international students enrolled at U.S. colleges and universities during the 2010-2011 academic year, according to the Institute of International Education.
“These students typically pay premium tuition rates and receive little to no funding from the college or university,” Nikodem said. “If a catastrophe event in their country causes these students to withdraw, the financial impact to the college or university could be substantial.”
HELP – International Catastrophe is the first product to be introduced as part of Lexington’s Higher Education Loss Protection (HELP) suite of coverages. It is available by endorsement to Lexington’s property insurance policy.
Lexington, a member company of the New York-based Chartis, states that this innovative new product is triggered by a catastrophe event, such as a flood or an earthquake in a foreign country, as opposed to a direct physical loss or damage to the property of the college or university.
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