HAMILTON, Bermuda, Oct. 14, 2015 /PRNewswire/ -- To address various
issues facing brokers and clients in the current M&A
environment, XL Catlin's Professional Lines Insurance Operations in
Bermuda have created a new
Directors & Officers lead excess Side A Difference In
Conditions ("DIC") policy.
Matthew Irvine, XL Catlin's
Bermuda Professional Lines Chief Underwriting Officer, said: "The
current and anticipated wave of insurance company consolidations
creates various issues for brokers and clients to consider under
D&O insurance programs. For example, the aggregate
capacity offered by a consolidated carrier may be less than the
separate capacities offered by each of the carriers before the
consolidation. In that case, new insurers will need to be
added to programs in which both of the consolidated carriers
participated. Also, if the same consolidated carrier
participates in both the underlying ABC program and the excess DIC
program, the quality of that carrier's drop-down coverage is
diluted because that carrier is insuring against its own wrongful
refusal to pay or insolvency.
"XL Catlin's insurance companies offer independent, high
quality and service-focused Side A DIC protection which addresses
these concerns. Based on our many years of exemplary Side A
underwriting and claims handling expertise, we now offer a creative
new lead Side A DIC policy which addresses the recent and
foreseable changes in the D&O claims environment and D&O
insurance market."
This new policy includes several coverage enhancements, such
as:
- Reinstated Limits: Two reinstated Limits of Liability
are automatically afforded for unrelated claims. The first
reinstated limit applies to all insured persons and the second
applies only to directors of the parent company.
- Insured Persons: The definition of insured persons is
expanded to include shadow and de facto directors, advisory board
members, prospective directors and representatives of entity
directors. Non-officer employees are also added as insured persons
for securities claims and cyber claims whether or not a director or
officer is a co-defendant
- Pre-Claim Inquiry Costs: Coverage for pre-claim
inquiries is expanded to also include a request to an insured
person for testimony or documents by any party in a proceeding in
which the company or another insured person is also a party
- Discovery Periods: An automatic six-year discovery
period is added if the policy is cancelled or non-renewed after the
commencement of a company bankruptcy proceeding, and an automatic
perpetual discovery period is added for former insured persons if
the policy terminates without the company purchasing similar
replacement coverage. No additional premium is required for either
of these discovery periods
- New Subsidiaries: Insured persons of all new
subsidiaries are automatically covered prospectively, regardless of
the size of the subsidiary
"We are constantly looking for innovative ways to develop and
enhance our portfolio of products," said Patrick Tannock who leads XL Catlin's Bermuda
Insurance Operations. "This new policy is an example of XL Catlin's
ability to understand market changing dynamics and provide
solutions that meet the ever evolving needs of clients."
About the XL Catlin Insurance Operations
The XL Catlin insurance companies offer property, casualty,
professional, financial lines and specialty insurance products
globally. Businesses that are moving the world forward choose XL
Catlin as their partner. To learn more,
visit xlcatlin.com.
About XL Catlin
XL Catlin is the global brand used by XL Group
plc's (NYSE:XL) insurance and reinsurance companies which
provide property, casualty, professional and specialty products to
industrial, commercial and professional firms, insurance companies
and other enterprises throughout the world. Clients look to
XL Catlin for answers to their most complex risks and to help move
their world forward. To learn more, visit xlcatlin.com.
Contact:
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Christine
Weirsky
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|
Media
Relations
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1-610-968-9395
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SOURCE XL Group