Chubb started marketing a new policy designed to help protect independent directors of mutual funds.
The product’s name: CODA Premier Mutual Fund Independent Director Liability Excess DIC policy.
Chubb said the policy differs from traditional policies for independent fund directors, which restrict coverage to non-indemnified directors. Chubb’s policy offers excess follow form coverage for a fund’s indemnification of its independent directors. As well, it incorporates privacy and network security coverage to non-indemnified directors via endorsement.
Additional coverage details include: two free reinstatements of the limits available, subject to underwriting; additional free six-year insolvency discovery period; additional free automatic reporting period of unlimited duration for former independent directors; expanded recognition of underlying limit erosion; automatic policy renewal capabilities; defense cost advancement within 60 days.
Chubb said the new coverage is meant to address the increase of regulatory investigations, investor lawsuits and advisor claims, which can put a director’s personal assets at high risk.
The policy will be available through Chubb’s commercial property and casualty insurance businesses in the U.S. and Bermuda, and cannot be canceled or rescinded for any reason except non-payment of premium.