Asterisk Financial Approved to Sell Personal Guarantee Insurance in California, Home to its Co-Founders

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Asterisk Financial Inc. of Middletown, CT has been approved to sell its patented Personal Guarantee Insurance (PGI) in several new states, including Texas, California and New Jersey. This brings the total to 38 plus the District of Columbia, just 16 months after its launch in June 2010. Plans call for nationwide coverage by early 2012.

Middletown, Conn., USA, Nov. 2, 2011 (PressReleasePoint) - - Asterisk Financial Inc., creators of Personal Guarantee Insurance™ (PGI), announced today it is licensed to do business in California, home to co-founders Casper W. Zublin Jr. and Andreas P. Graham, both of whom sit on the company’s board. 
 
Less than 18 months after its launch in June 2010, Asterisk is now licensed to do business in 38 states and the District of Columbia, with plans to be in business nationwide by early 2012. The company has been on an aggressive expansion track since it first rolled out PGI in five states.
 
Other recent states that have been added include Texas, New Jersey and Pennsylvania.
 
PGI, an admitted product (i.e. regulated by the licensing state), is the first-ever insurance that protects small-to-medium-size business owners, partners and investors against personal asset loss from personal guarantees.
 
Richard G. Reinis, an attorney in Century City, California, had provided a personal guarantee on a bank loan for his Krispy Kreme franchise operation, when business was booming and lines were out the door. When the lines disappeared, the loan officer came calling, and Reinis risked losing his personal assets. 
 
“I wish PGI had been around when our company was seeking financing,” said Reinis. “It would have given me bargaining leverage and peace of mind I didn’t have at the time. PGI is a prudent investment for loan guarantors as it helps to protect some of their downside risk.”
 
In today’s restrictive lending environment, banks are requiring most of those seeking a business loan to sign a personal guarantee. With the stroke of a pen, a loan recipient exposes their personal assets, such as real estate and bank accounts, as additional sources of debt repayment. Banks can then pursue these assets as repayment by “calling in” the personal guarantee in the event of a business loan default. For the guarantor, the results can be catastrophic, exhausting their means to restart their business and in some cases losing their homes.
 
For the first time, guarantors – including business owners, commercial real estate investors and limited partners – can have a substantial portion of their net liability covered through PGI if the underlying business should fail.
 
Zublin, the former CEO of a major systems integration firm, knows firsthand the risks involved in signing a personal guarantee without protection. He came close to losing his personal assets when the business struggled and cash was tight, before things turned around and he and his partners were able to sell the company at a profit.
 
“I’m thrilled that PGI is now available for business owners and investors in California,” said Zublin, who lives in Newport Beach, Calif. “The ability to mitigate the risk of personal loss from business financing frees them up to pursue business growth and expansion without the anxiety that typically accompanies the signing of a personal guarantee.”
 
 
About Asterisk Financial
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