National Union Fire Insurance Company of Pittsburgh, Pa.® (National Union), a member company of American International Group, Inc. (AIG), has introduced Maximum A-Side Excess Insurance(SM) (MAX), a “Side A” excess non-indemnifiable loss policy with a Difference In Conditions provision that provides comprehensive protection for directors and officers.
Side A coverage is pure directors and officers (D&O) coverage. It offers protection for claims in which the company is not permitted or required to provide indemnity. MAX provides indemnification even when the insured’s company fails to meet its indemnity obligations.(1) Coverage is available with limits of liability up to $25 million and can be written either in excess of an American International Companies’ or another carrier’s D&O policy.
MAX is a non-rescindable policy that provides follow-form Side A coverage(2) and becomes the primary insurance in the event of exhaustion of the underlying carriers’ limits of liability. A Difference In Conditions provision provides first-dollar protection in certain non-indemnifiable claims when the insured is unable to access D&O coverage due to rescission of the underlying policies, wrongful refusal and/or financial inability of the underlying carriers to indemnify insured persons, or denial of coverage by underlying carriers due to terms and conditions inconsistent with MAX.
In addition to Maximum A-Side Excess, National Union has recently introduced IDL Premier(SM), a corporate solution that provides independent directors with an extra layer of non-rescindable protection; ExecSecure(SM), enhanced “Side A” excess D&O coverage for all executives; and D&O First(SM), primary D&O liability coverage.
National Union has developed a list of 10 questions for directors and officers to ask their respective companies to find out if an existing D&O policy adequately protects their personal assets. The questionnaire can be found at www.aig.com/directorsandofficers.
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