PHILADELPHIA, March 30, 2016 /PRNewswire/ -- In today's volatile and expanding regulatory environment, acting as an independent director of a mutual fund can be a risky proposition. Regulatory investigations, investor lawsuits and advisor claims have steadily increased in recent years and are costly to defend, putting a director's personal assets at high risk. Recognizing a need in the market for broad-based protection for independent fund trustees, Chubb today announced the release of the CODA Premier® Mutual Fund Independent Director Liability Excess DIC (CODA Premier® Mutual Fund IDL) policy. Unlike typical policies for independent fund directors, which restrict coverage to non-indemnified directors, the policy also offers excess follow form coverage for a fund's indemnification of its independent directors and incorporates privacy and network security coverage to non-indemnified directors via endorsement.
"Providing directors and officers with the coverage they need has long been a priority of ours, as evidenced by our CODA Premier® policy, which has been and continues to be the market standard for more than 30 years," said Scott A. Meyer, Division President, North America Financial Lines. "Our goal in developing this new policy was to provide the most robust D&O coverage in the market for independent directors and trustees of mutual funds. Chubb's CODA Premier® Mutual Fund IDL policy provides unparalleled breadth of coverage, incorporating several market-leading enhancements that directly respond to the evolving business and regulatory environment."
Key highlights of the coverage include:
- Follow form excess coverage for a fund's indemnification of its independent directors;
- Two free reinstatements of the limits available, subject to underwriting;
- Additional free six-year insolvency discovery period;
- Additional free automatic reporting period of unlimited duration for former independent directors;
- Extra protection via separate funds established for the independent directors, including CODA Access Fund limit, Public Relations Fund sublimit and Enforcement Fund sublimit;
- Broadened definition of "claim";
- Expanded recognition of underlying limit erosion;
- Automatic policy renewal capabilities;
- Defense cost advancement within 60 days; and
- Privacy and Network Security coverage by endorsement for non-indemnified independent directors, including:
- Privacy Liability coverage for sensitive personal and corporate information;
- Network Security Liability coverage for unauthorized access to the mutual fund's network; and
Chubb's CODA Premier® Mutual Fund IDL policy is available through commercial property and casualty insurance businesses in the U.S. and Bermuda and cannot be cancelled or rescinded for any reason except non-payment of premium.
Product highlights are summaries only; please see the actual policy for terms and conditions. Product offerings may vary by location.
Chubb is the world's largest publicly traded property and casualty insurance company. With operations in 54 countries, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. The company is distinguished by its extensive product and service offerings, broad distribution capabilities, exceptional financial strength, underwriting excellence, superior claims handling expertise and local operations globally. Parent company Chubb Limited is listed on the New York Stock Exchange (NYSE: CB) and is a component of the S&P 500 index. Chubb maintains executive offices in Zurich, New York, London and other locations, and employs approximately 30,000 people worldwide. Additional information can be found at new.chubb.com.
Chubb Bermuda offers insurance products and services through Bermuda and non-U.S. based intermediaries. For more information about Chubb Bermuda's insurance products, please contact your Bermuda broker. A full list of Bermuda based brokers can be found on the Bermuda Insurance Market website at www.bermuda-insurance.org. Chubb Bermuda is regulated by the Bermuda Monetary Authority. Chubb Bermuda is not licensed in the U.S. as an admitted insured, nor is it an eligible excess and surplus lines insurer. This is intended for general information purposes.
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