View this article online: https://www.insurancejournal.com/news/national/2004/03/25/40418.htm
National Union Fire Insurance Company of Pittsburgh, Pa., a member company of American International Group, announced the launch of Mutual Fund IDL Premier(SM), a new coverage designed to meet the emerging liability exposures faced by independent board members of mutual funds.
“With mutual funds the focus of unprecedented public and regulatory scrutiny, new rules and pending legislation are expected to increase both the responsibilities and potential liabilities of independent board members,” stated National Union President and CEO John Keogh. “Mutual Fund IDL Premier is a non-rescindable insurance solution designed to provide independent mutual fund board members with an extra layer of security at a time when their board service may otherwise put them at substantial personal risk.”
The bulletin said the new coverage is “designed with the flexibility to provide primary coverage for claims–with no retention–when a mutual fund’s standard Directors & Officers (D&O) policy does not protect independent board members due to insurer rescission or an insured’s breach of a ‘non-severable’ warranty in the application.”
Additional coverage highlights include:
— Excess non-indemnifiable coverage solely for independent directors;
— Non-rescindable coverage for defense costs, settlements and judgments; and
— No retention when Mutual Fund IDL Premier drops-down to replace other D&O policies.
It also noted that “Mutual Fund IDL Premier can be written either as a complement to an insured’s existing D&O policy from an AIG member company, or in conjunction with other insurers’ D&O offerings.”
More information on Mutual Fund IDL Premier may be obtained by contacting Scott Meyer, President, National Union Financial Institutions Group, at (212) 458-6317, or e-mail managementliability@aig.com.