Mutual Fund D&O Policy Launched

Mutual Fund D&O Policy Launched

NU Online News Service, March 24, 11:00 a.m. EST--National Union Fire Insurance Company, a member company of American International Group, today introduced 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," said John Keogh, president and chief executive officer of National Union, based in Pittsburgh.

The new product, "Mutual Fund IDL Premier," was described as 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 carrier said the product is designed with "the flexibility to provide primary coverage for claims with no retention when a mutual fund's standard directors and officers 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.

? No retention when the policy drops down to replace other D&O policies.

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.

For more information, contact Scott Meyer, president of the National Union Financial Institutions Group at 212-458-6317, or e-mail managementliability@aig.com.