The Fidelity and Deposit Companies (F&D) is now offering temporary increases on coverage limits to its financial institution bondholders. The temporary increases will provide financial institutions with coverage for additional cash requirements resulting from the Year 2000 transition.
Due to the increased exposure to financial institutions from burglary and robbery losses as a result of having additional cash on hand during the Y2K transitional period, F&D is offering temporary increases for two, three, or more months to cover this exposure.
For additional information, call F&D at (800) 821-4635 or visit F&D's Web site (www.fidelityanddeposit.com).
Royal & Sun Alliance plans to acquire Orion Capital
Royal & Sun Alliance has signed a definitive agreement to acquire Orion Capital, a specialty insurer which focuses on three commercial niches. Orion writes nonstandard personal auto through OrionAuto, workers comp through EBI Companies and specialty commercial insurance through Orion Specialty, which includes DPIC Companies.
The acquisition is subject to regulatory approval and is expected to be completed, via tender offer, by the 4th quarter.
Following the close of the transaction Royal & Sun Alliance will maintain the Orion brands and operate three major divisions: commercial, personal and specialty. The Commercial Insurance division will include Royal & Sun Alliance's retail branches and Orion's EBI Companies. OrionAuto will join the Personal Insurance Division.
The Specialty Insurance Division will be headed by W. Marston Becker, Orion Capital's chairman and CEO.
When the agreement was announced in July, the acquisition was valued at approximately $1.4 billion.
AIG offers loss control tools to EPLI insureds
American International Group (AIG), announced that the American International Companies now are offering EPL Pak Plus, an enhanced version of EPL Pak, a specialized loss control services program provided free to eligible Employment Practices Liability Insurance (EPLI) insureds.
EPL Pak Plus now includes access to the Sexual Harassment Training and Examination Program (STEP), an Internet-based employee testing and training program, and a toll-free hotline to report employment practices issues. The American International Companies developed these enhancements after recent United States Supreme Court decisions regarding employer responsibility to promote proper employer practices in the workplace.
STEP is a 20-minute program offered by HR-Comply, Inc., that leads employees through a training program that educates employees on sexual harassment scenarios and concludes with a final exam that ultimately can provide evidence of the employer's affirmative efforts to assure--and employees' knowledge of--proper employment practices. The program also is available in hard copy form.
EPLI insureds also have access to a toll-free, 24-hour-a-day, seven days a week, manned "Hotline" offered by EthicsLine that is available to an insured's employees to report harassment, discrimination, and other employment-related issues to an independent third party. Callers may remain anonymous. EthicsLine consultants gather information about an employment practices incident from the caller and generate a report. The report is forwarded within one business day to a designated contact person(s) at the insured's company for follow-up and/or further investigation if necessary. In the event of an emergency, a designated contact person will be notified of the situation immediately. EthicsLine does not include any investigation or analysis pertaining to the accuracy or reliability of information received as a result of a call.
"EPL Pak Plus provides insureds with tools that not only address risk, but also to help develop a legal defense should litigation ensue from an employment practices claim," said John Cavoores, president, National Union Fire Insurance Company of Pittsburgh, Pennsylvania. Additionally, EPL Pak Plus continues to offer value-added services to help insureds manage their employment practices initiatives. This includes access to educational programs and resources, and consultation on human resources management and employment practices labor law.
EPL Pak Plus includes the features of EPL Pak, which is designed to help insureds obtain compliance with current labor laws and regulations. Loss prevention services include:
* Compliance Digest and Encyclopedia portions of the HR/ComplyTM electronic human resource library
* an initial legal consultation with top labor and employment attorneys
* an employment practices self-audit guide
* employment practices seminars
* a monthly EPL client newsletter from top employment practices firms
* a fixed price on legal review and analysis of an insured's EPL policies.
More information about EPL Pak Plus is available from: managementliability@aig.com or by calling Robin Kestenbaum at: (212) 458-1716. Information on these and other management liability products is available online (http://access.aig.com).
St. Paul offers stand-alone EPL policy
St. Paul Fire and Marine Insurance Company introduced a stand-alone employment practices liability policy. It is designed for businesses with more than 250 employees.
"This stand-alone policy was developed to meet an increased demand from customers who want a single policy with its own limit as well as separate coverage, terms and conditions," said Kevin Rehnberg, St. Paul's vice president-Financial and Professional Services, St. Paul Fire and Marine Insurance Company.
The policy, covering 16 named perils, includes automatic run-off coverage and provides coverage worldwide. It is a non-cancelable contract except for nonpayment of premium.
The policy also offers flexible coverage options that can be tailored to meet the needs of the customers. Some of these options include coverages for duty to defend or indemnification; employees; leased employees and independent employees; and punitive or exemplary damages where insurable by law.
RPI expands pleasure craft program
Recreational Products Insurance (RPI), a member of the Zurich Financial Services Group, has expanded its Pleasure Craft program which it offers in 11 states. Vessels up to $60,000 are now eligible and additional deductible and coverage options have been added.
Extended coverages
Under the new Pleasure Craft program, customers now can choose from personal effects, fishing gear and towing and assistance coverages.
Clothing, water sports equipment and other personal items such as lawn chairs, coolers and grills are protected under personal effects coverage. Rods, reels, lures, lines, riggings and other fishing supplies are provided for under fishing gear coverage. Both have available limits of $1,000 with a $150 deductible, or $2,500 with a $250 deductible.
In addition, portable boating equipment, which includes marine specific items such as oars, anchors, lights and life preservers, now is automatically covered for 10% of the entire value, with no maximum limits.
Towing and assistance coverage also is available, at reasonable cost, incurred as a result of commercial assistance for emergency services. Standard coverage is $250.
Liability protection
Liability protection includes medical payments and uninsured boaters. Medical payment limits have increased from $500 to $1,000.
Uninsured boaters coverage pays for bodily injury damages if customers or their guests are injured by an uninsured boater. Those limits also have increased, from $10,000 to $25,000. And, RPI has extended optional deductibles to include $500 and $1,000.
RPI's new Pleasure Craft policy, available on a 12-month basis, is available in Arkansas, Iowa, Indiana, Illinois, Kansas, Michigan, Minnesota, Ohio, Pennsylvania, Tennessee and Wisconsin.
RPI's Pleasure Craft program is underwritten by Maryland Casualty Company, a subsidiary of Zurich Financial Services. For more information call (800) 238-2446.
CGU introduces new inland marine product
CGU Insurance unveiled an output policy called MaxPac offering property and inland marine coverage to a wide range of large commercial and industrial businesses.
Typical risks to be considered for MaxPac are those with more than one of the following characteristics: a total insured value of at least $5 million; multiple locations or states; diverse inland marine exposures, especially transportation-related; superior construction and/or sprinklered locations; and broad coverage requirements.
Companies also should exhibit financial stability with a D&B rating of 1 or 2, a reputable and long-standing presence, positive name recognition, low employee turnover, effective management and a good loss history.
The coverages that distinguish MaxPac from competitors, according to CGU, are brands and labels; building ordinance; consequential loss; covered property in transit or at any other location; excavation; landscaping and paved surfaces; foreign coverage; pollutant cleanup; products recall expense; time element additional coverages; radio and television towers, and antennas; utilities failure and valuable papers.
While the "official filed minimum" policy premium is $1,000, MaxPac is designed for larger, more complex risks where premiums typically are much higher. The standard deductible is $1,000, but an insured can take advantage of substantial rate credits that are available, for example, by accepting higher deductibles of $5,000 to $10,000.
RLI raises limit on stand-alone personal umbrella
RLI Corp. has added a $5 million limit option to its stand-alone personal umbrella policy. The new limit has been introduced in 43 states. Filings are awaiting approval in Delaware, Kansas, Louisiana, Mississippi, New Jersey, New Mexico, South Carolina and Texas.
Agents can complete a 19-question application to determine if an insured is eligible for the policy, which does not require underlying homeowners or auto policies.
The policy includes: direct billing at renewal; "A" rated paper; acceptance with up to two accidents, four tickets, six cars, six properties and three watercraft.
Additional information about the program is available at the company's Web site (www.rlicorp.com) or by contacting Becky Lundberg, RLI's marketing manager-personal umbrella, by e-mail at: Becky_Lundberg@rlicorp.com or by phone at: (309) 692-1000, ext. 5512.
St. Paul offers bankers professional liability policy
St. Paul Fire and Marine introduced a new bankers professional liability (BPL) insurance policy designed for financial institutions of all sizes. The policy protects the bank, its directors, officers and employees when customers make claims because of errors or omissions in the delivery of professional services.
The coverage provides automatic protection when fee-based services such as insurance, brokerage and investment advisory services evolve and new services are added. However, the premium charged is based only on the exposures that exist at the time the policy is written.
Other features of the policy are:
* "pay-on-behalf" insuring agreements and the advancement of defense expense
* no retention for non-indemnifiable claims against individual insureds
* policy cancellation only for nonpayment of premium
Also, the definition of "claim" includes a written demand for monetary damages and civil proceedings or an administrative or arbitration proceeding.
Chubb increases limits
of political risk coverage
The Chubb Group has increased the capacity for its various political risk products. "Chubb is expanding its political risk capabilities to help its middle market clients address a new variety of financial risk as they increasingly expand into international markets," said Pat Skold, political risk specialist for Chubb & Son.
The confiscation, expropriation, nationalization and deprivation product (CEND) now is available for limits up to $50 million. In addition, these contracts now may be written for a policy term of up to 10 years. These capacity and policy term enhancements also apply to Chubb's political risk insurance for infrastructure projects. Protection for cross-border war now is available for a policy period of up to five years.
Chubb's contract frustration product also has increased capacity of up to $25 million with an available policy term of up to five years. The wrongful calling of guarantee facility also offers increased limits of up to $25 million for terms up to five years.
The Political Risk Division is a component of Chubb's Multinational Resource Group (MRG) in the company's Warren, New Jersey, headquarters. An agent or broker either can contact the local Chubb underwriter or send an inquiry directly to Chubb's political risk underwriters. To submit an application directly to the Political Risk Division, e-mail Pat Skold (pskold@chubb.com) or Fredrik Murer (fmurer@chubb.com).
Zurich hikes political risk
limits, extends policy term
The Zurich U.S. Political Risk group has doubled its political
risk insurance risk capacity to
$100 million per risk, and extended the maximum term of coverage to
15 years. These increases respond to the growing demand for Zurich's global political risk coverage from major international infrastructure developers, contractors and financial institutions who are involved in power, telecom, oil and gas, transportation, mining and water.
"Zurich customers are continuing to invest in and lend to projects in emerging markets, requiring larger amounts of coverage against expropriation, political violence, currency inconvertibility and other perils," states Daniel W. Riordan, vice president and managing director, Zurich U.S. Political Risk.
Since its inception, Zurich U.S. has written policies covering risks in 54 countries, meeting their needs in project finance, structured trade, asset-backed finance and bond transactions. In the future, the group plans to offer new coverages and expand its operations to London. According to Kenneth P. Sroka, executive vice president at Zurich U.S., "By offering new political risk products and adding a London office, we hope to expand relationships with our customers by helping them to meet the challenges of their growing emerging market interests." *
©COPYRIGHT: The Rough Notes Magazine, 1999