Chubb backs Trump for Carroll bond

Chubb backs Trump for Carroll bond | Insurance Business America

Insurance News

Chubb backs Trump for Carroll bond

Giant insurer has previous history with the ex-president

Insurance News

By
Kenneth Araullo

Donald Trump has secured a bond exceeding $91 million, underwritten by Chubb, that enables him to appeal a defamation judgment awarded to writer E. Jean Carroll, amid efforts by the former president to arrange another larger bond for a separate business fraud judgment.

In a legal document, Trump’s agreement with Chubb outlines the bond covering the $83.3 million in damages awarded to Carroll. The writer accused Trump of defamation following her allegations of a sexual assault incident dating back to the 1990s.

Trump, who has firmly denied those accusations, indicated his intention to challenge the verdict.

This legal development unfolds as Trump, currently the front-runner for the Republican nomination in the upcoming presidential election, faces a deadline to post an even more substantial bond — more than $450 million related to a fraud lawsuit.

This sum, according to Trump’s legal team, might necessitate the sale of several assets.

The appeal against the defamation judgment temporarily shields Trump from financial liability pending the appeal’s outcome, subject to approval by US District Court Judge Lewis A Kaplan. Meanwhile, an appeals court is reviewing Trump’s request to delay the payment of the business fraud judgment, with a decision expected shortly.

The defamation case is one of several legal challenges confronting Trump. He is also facing four indictments encompassing 91 criminal counts related to various allegations, including the mishandling of classified documents and attempts to influence the 2020 presidential election outcome.

The business fraud judgment stems from a lawsuit filed by New York Attorney General Letitia James, alleging Trump and his company engaged in deceptive practices to inflate profits.

Despite Trump’s request for a reduced bond, a New York appeals court judge mandated the full amount.

A history between Chubb and Trump

Chubb emphasized the role of surety bonds in the American justice system, ensuring defendants can appeal adverse judgments and plaintiffs can secure awarded damages.

“Our surety division provides appeal bonds in the normal course of business. These bonds are an ordinary and important part of the American justice system, protecting the rights of both defendants and plaintiffs,” the company said in a statement.

That said, the specifics of the collateral provided by Trump to Chubb remain undisclosed, sparking debate and speculation about the financial arrangements behind the bond.

Trump has had prior engagements with Chubb, which has issued insurance policies to him in the past — transactions that were examined in the civil lawsuit initiated by James.

James claimed that, in 2010, Chubb dispatched an insurance appraiser to evaluate Trump’s three-level penthouse in Trump Tower, but Trump hurried the specialist out of the location within 15 minutes, preventing any measurements from being taken.

Additionally, the Chubb evaluator was barred from viewing the main bedroom under the pretext that Melania Trump was asleep.

Trump has also been accused of exaggerating the size of the 11,000-square-foot apartment threefold, leveraging an inaccurate figure to significantly overstate his wealth.

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