XL Insurance Unit Announces Expanded D&O Policy

November 4, 2004

XL Insurance (Bermuda) Ltd., a subsidiary of XL Capital Ltd., announced that its Bermuda-based professional lines insurance operation has added fiduciary liability coverage to its directors and officers insurance policy.

The expanded policy, known as “A PLUS D&O”, replaces XLIBL’s IDOL policy. It was recently unveiled at the annual conference of the Professional Liability Underwriters Society (PLUS) taking place in San Diego, California.

The new policy also provides excess difference-in-conditions coverage above an existing D&O liability policy.

Chief Underwriting Officer, XL Professional Lines for North America, Rich Banas, noted: “XL’s leadership position in professional lines underwriting, results from several factors including meeting customer needs. Similar to the development of our Employment Practices Liability insurance for large employers, we took a step back and looked at the changing landscape and emerging risk facing directors and officers. We found demand for broad form fiduciary liability insurance similar in nature to the broad form individual directors and officers liability insurance in our IDOL policy. Like other recent product launches by XL’s insurance segment, ‘A Plus D&O’ demonstrates our continued commitment to this market segment. ‘A Plus D&O’ is a cutting- edge product backed by meaningful capacity and XL Insurance’s financial strength.”

Chief Underwriting Officer, XL Professional Lines, Bermuda, Sherron Williams, commented: “The development of relevant products is fundamental to our strategy to be a one-source provider of insurance to our risk management clients. Expanding the coverage available under this key product should position us to retain and increase our D&O client base. The coverage enhancements expand the policy to provide excess difference in conditions (DIC) coverage above a Directors and Officers Liability policy and a Fiduciary Liability policy for an insured. Further coverage enhancements also ensure broad protection for directors and officers in the time of greatest need: when they are personally liable for defense costs and settlements/judgments in this expensive area of litigation.”

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