ACE Bermuda International announced that effective July 1, 2008 all CODA policies will be issued at inception. The company also announced the launch of its new 2008 CODA policy aimed at the UK business market, featuring enhanced personal asset protection for directors and officers.
ACE’s CODA policies are an adjunct to traditional Directors and Officer liability coverage “designed to provide personal asset protection to directors and officers in situations where indemnification is unavailable or when traditional insurance programs fail to respond,” explains the ACE web site (www.acelimited.com). ACE Bermuda International, through its CODA brand, is one of the leading providers of these types of policies.
Charles Davidson, Professional Lines Manager, ACE Bermuda International, commented: “The new 2008 CODA policy responds to the increasing exposures faced by directors and executive officers of UK corporations under the UK Companies Act 2006 by ensuring that their personal assets are adequately protected.” He added that ACE’s “commitment to issuing policies at inception is a significant differentiator in the D&O market and tangibly demonstrates our commitment to contract certainty.”
ACE summarized the enhancements to the 2008 CODA policy include: the following
— Protection against payment delays – the policy can “drop down” and provide primary coverage where an underlying insurer fails to pay a loss within 60 days;
— Broader coverage for legal costs;
— Personal conduct exclusions significantly narrowed;
— Blanket outside board coverage for the main board; and
— Automatic extradition costs coverage with no sub-limit.
Source: ACE Bermuda International – www.acebermudainternational.com
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