National Union Fire Insurance Company of Pittsburgh, Pa. (National Union), a member company of American International Group Inc. (AIG), announced the launch of IDL MAX, a non-indemnifiable loss (“Side-A”) excess liability insurance program enhanced with Difference In Conditions (DIC) coverage for independent directors of publicly-traded corporations.
IDL MAX also offers independent directors the opportunity to add an excess layer of non-indemnifiable loss coverage solely dedicated to protecting them when traditional D&O insurance cannot.
“In the past few years, securities cases and settlement values have increased at an alarming rate,” said John Keogh, president and CEO, National Union. “IDL MAX provides directors with the comfort of knowing that their individual assets are protected, allowing them to focus on fulfilling their fiduciary duties. And since IDL MAX is designed to provide coverage for only those independent directors scheduled on the policy, the limits cannot be diminished by corporate liabilities or by non-insured executives who may be accused of wrongful conduct.”
In addition to offering excess Side-A and DIC coverage, IDL MAX also drops down to provide first-dollar coverage in circumstances when the corporation refuses to indemnify the independent director and the traditional D&O policy does not respond due to:
— Threatened or actual rescission of the underlying insurance policy;
— Wrongful refusal to pay by any underlying carrier;
— Financial insolvency of any underlying carrier;
— Denial of coverage by any underlying carrier due to terms and conditions not contained in the more favorable IDL MAX policy (DIC coverage); or
— Any underlying insurance policy being “frozen” because it is alleged to be part of the debtor’s bankruptcy estate.
IDL MAX contains limited exclusions as compared with traditional D&O policies. It can be underwritten in conjunction with other D&O policies issued by AIG member companies or on a stand-alone basis.*
For more information on IDL MAX, e-mail firstname.lastname@example.org or visit www.aignationalunion.com.
* Insurance is underwritten by member companies of American International Group Inc., and is subject to underwriting review and approval.
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