Post on 05-Jan-2016
Insurance Community University
Executive Liability
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The webinar will begin shortly.
There is no audio at this time.
This presentation is being recorded for your viewing pleasure at a future date.
The attendance and proctor forms are available under ‘Materials’ in the Webinar’s Console to the right.
The PowerPoint presentation is also available under ‘Materials’.
You will receive the course number for your state near the end of class.
Use the ‘chat’ window for questions on the content.
100% Participation in Polling Questions is required to receive credit for this class. Even if you do not intend to receive credit, please participate in the polls.
Insurance Community University
Welcome to your Insurance Community University
• All of you are currently on mute – Un-mute your own system– Telephone Option
• Select Telephone on your screen• Dial in the PIN number so that your number becomes active
– Microphone and/or Speaker Option• You can use this option if you have a headset that you use
with your computer
Audio
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Insurance Community University
Participation & Chat Window
• You will receive information from the monitor via the ‘Chat’ window. – Please locate window in the control panel
• Q & A is welcomed during the presentation and at the end of the presentation
• You will find the question box on your control panel– Write your question in that box
and send it to the presenter/organizer
• The presenter will take those• questions in the order submitted
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DOI Requirements
• When you see a slide with the hand up symbol, touch the “hand” icon on your control panel– Click ONCE only
• If you do not raise your hand, the monitor will be in contact with you in the chat box
• If you are in a group, the designated proctor is responsible to make certain you are all in attendance at all times
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= Hand is down
Insurance Community University
Polling
• Throughout the class we will be conducting periodic polls
• We need 100% participation on the polls• The polls are intended to check
participation but also to create discussion topics throughout the presentation
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Forms To Complete for CE
• After class ends– Return attendance form– Proctors – return your form to email
address
• Email address is in chat window or in email sent to you today
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Insurance Community University
DOI Requirements
• We will file your hours with the DOI after the completion of this webinar and we have received the attendance form.
• You have 48 hours to return the form• You will be sent a Certificate of
Attendance/Completion by email. Please retain this for your records for five years.
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Internet Disruption
• If the presenter looses internet connection STAY ON THE LINE
• The administrators will communicate with you
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Internet Failure
• If the internet fails and all participants are kicked off line by Go To Training or other source then the seminar will be terminated
• You will receive instructions by email as to how we will proceed
• This is a precautionary notice, only
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Insurance Community University
This class is being recorded
• Available in the University• This course is approved for CE in CA Only
Insurance Community University
DisclaimerInsurance forms and endorsements vary based on insurance company;
changes in edition dates; regulations; court decisions; and state jurisdiction. This instructional materials provided by Insight is
intended as a general guideline and any interpretations provided by the instructor or the creator(s) of this material do not modify or
revise insurance policy language. In providing these materials, the authors assume neither liability nor responsibility to any person or
business with respect to any loss that is alleged to be caused directly or indirectly as a result of the instructional materials
provided. Copyright 2010 – 2013 All Rights Reserved
www.insurancecommunitycenter.com
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Insurance Community University
Your Instructor Today
Marjorie L. Segale, AFIS, CISC, RPLU, CIC, CRIS, ACSR, CISRInsurance Community Center, LLC
Director of EducationPresident: Segale Consulting
marjorie@insurancecommunitycenter.com714.206.9583
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Insurance Community University
What This Course Will Cover
1. Overview of Executive Liability2. Overview of Directors and Officers3. Employment Practices Liability4. Fiduciary Liability5. Employee Benefit Liability (EBL)
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Insurance Community University
Polling Question #1
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Insurance Community University
Overview of Executive Liability
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Insurance Community University
Executive Liability Basics
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Insurance Community University
Executive Liability Basics
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Insurance Community University
Executive Liability Coverage Basics
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D & O BasicsCovered in depth in D & O class
material. Available in the University for
downloading.
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D & O Coverage Basics
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Partnership Liability Coverage Basics
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Employment Practices Liability Insurance (EPLI) Basics
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Employee Benefits Liability Coverage Basics
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Fiduciary Liability Coverage Basics
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Asset Risk and Protection
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Insurance Community University
Polling Question #2
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Insurance Community University
Insuring Agreement Sample Language
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Insurance Community University
EPLI Insuring Agreement
• The Company shall pay, on behalf of the Insureds, Loss on account of any Employment Claim first made against such Insured during the Policy Period or, if exercised, during the Extended Reporting Period, for Employment Practices Wrongful Acts, but only if such Employment Claim is reported to the Company in writing in the manner and within the time provided in Subsection 12 of this coverage section.
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EPLI Wrongful Act
Wrongful Act means an Employment Practices Wrongful Act and, if Third Party Liability Coverage is purchased, a Third Party Wrongful Act.
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EPLI Wrongful Act
Wrongful act means:Breach of Employment Contract, Employment Discrimination, Harassment, Retaliation, Workplace Tort, Wrongful Employment Decision or Termination
committed, attempted, or allegedly committed or attempted by any Organization or by any Insured Person in his or her capacity as such.
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Policy Coverage Response
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Insurance Community University
Definition of Loss
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Insurance Community University
Definition of Loss
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EBL Insuring Agreement
a. We will pay those sums that the insured becomes legally obligated to pay as damages because of any act, error or omission, of the insured, or of any other person for whose acts the insured is legally liable, to which this insurance applies.
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Employee Benefit Liability Definition of Loss
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Insurance Community University
EBLI Limit of Insurance
Subject to the Aggregate Limit, the Each Employee Limit is the most we will pay for all damages sustained by any one "employee", including damages sustained by such "employee's" dependents and beneficiaries, as a result of:
(1) An act, error or omission; or(2) A series of related acts, errors or omissionsnegligently committed in the "administration" of your "employee benefit program".
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Insurance Community University
EBLI Limit of Insurance
However, the amount paid under this endorsement shall not exceed, and will be subject to, the limits and restrictions that apply to the payment of benefits in any plan included in the "employee benefit program".
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Policy Coverage Response
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Fiduciary Liability Insuring Agreement• The Company shall pay, on behalf of the Insureds,
Loss on account of any Fiduciary Claim first made against the Insureds during the Policy Period, or, if exercised, during the Extended Reporting Period, for a Wrongful Act committed, attempted or allegedly committed or attempted before or during the Policy Period by such insureds, or by any person for whose Wrongful Acts the Insureds are legally responsible, but only if such Claim is reported to the Company in writing in the manner and within the time provided in Subsection 11 of this coverage section..
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Fiduciary Claim means:
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Fiduciary Claim means:
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Fiduciary Liability Wrongful Act
• Any breach of the responsibilities, obligations or duties imposed by ERISA upon fiduciaries of the Sponsored Plan in their capacity as such fiduciaries;
• Any negligent act, error or omission in the Administration of any Plan committed, attempted, or allegedly committed or attempted by an Insured in the Insured’s capacity as such
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Insurance Community University
Fiduciary Liability Wrongful Act
• Any other matter claimed against an Insured solely by reason of the Insured’s service as a fiduciary of any Sponsored Plan.
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Policy Coverage Response
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Polling Question #3
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EPLI Exclusions
• Wage and Hour / FLSA exclusion– Current trend in EPLI litigation due to
exempt v. non-exempt employee status– Some forms include very small amount of
coverage for defense and damages– Significant risk exposure for today’s
employers– A few forms still have sub-limit available
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Insurance Community University
Wage and Hour Exclusion Sample Language
For any actual or alleged violation of the responsibilities, obligations or duties imposed by any federal, state, or local statutory law or common law anywhere in the world (including but not limited to the Fair Labor Standards Act) or amendments to or regulations promulgated under any such law that governs wage, hour and payroll policies and practices, except the Equal Pay Act (“Wage and Hour Laws”), including but not limited to:
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Insurance Community University
Wage and Hour Exclusion Sample Language(i) the calculation, timing or manner of payment
of minimum wages, prevailing wage rates, overtime pay or other compensation alleged to be due and owing;
(ii) the classification of any organization or person for wage and hour purposes;
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Insurance Community University
EPLI Exclusions
• Immigration exclusion– Becoming a more common action today– Look for an exception or a sub-limit for
defense, damages or both
• Bodily injury– Look for exception for mental anguish,
emotional distress, humiliation, etc.
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Bodily Injury Exclusion Sample Language• For bodily injury, mental anguish, emotional
distress, humiliation, sickness, disease or death of any person or damage to or destruction of any tangible property including loss of use thereof whether or not it is damaged or destroyed; provided that this Exclusion 4(h) shall not apply to mental anguish, emotional distress or humiliation resulting from any Wrongful Act;
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Who Is An Insured (or Should Be) EPLI
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Insurance Community University
Who Is An Insured (or Should Be)EBL / Fiduciary
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Insurance Community University
On All Policies
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Insurance Community University
Polling Question #4
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Insurance Community University
Claims Made and Reported Forms
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Sample Language
Except to such extent as may otherwise be provided herein, the coverage of this policy is limited to liability for only those claims that are first made against you and reported in writing to us during the policy period.
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Possible Coverage Gap
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Basic Extended Reporting Period Example• If we or the named insured shall cancel or elect
not to renew this policy, you shall have the right following the effective date of such cancellation or nonrenewal to a period of sixty (60) days (herein referred to as the “Automatic Extended Reporting Period”) in which to give written notice to us of claims first made against you during the Automatic Extended Reporting Period for any wrongful act occurring prior to the end of the policy period and otherwise covered by this policy.
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Insurance Community University
Solutions
• Place coverage with a company using a claims made form rather than a claims made and reported form
• Modify coverage with incumbent insurance company
• If all else fails, notify the insured in writing – producer needs to meet with client and obtain acknowledgment in writing from client - annually
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Insurance Community University
Claim
• Always check the definition of claim– Will vary by policy– When is a claim a claim?
• When it is received by the insured?• When it is filed against the insured?
– Differing definitions when moving the account to another company could leave your client with no coverage
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Insurance Community University
Reporting Provisions
• Who has to know and who has to tell?– Always make sure that you narrow the
definition of this responsible party to (example) executive officer of the Named Insured (or Parent Company) or risk manager
– Leaving it as the ‘insured’ must notify means that anyone can find out about a claim and failure to report could remove coverage
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Pending & Prior Litigation
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P & P Exclusion Example
“We shall not cover claims: N. first made against you prior to, or pending, as of the first inception date, or relating to the essential facts, circumstances or situation underlying such claim.”
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P & P Exclusion With Proper Exception(b) based upon, arising from or in consequence
of any demand, suit, or other proceeding pending against, or order, decree or judgment entered for or against any Insured, on or prior to the applicable Pending or Prior Date set forth in Item 7 of the Declarations for this coverage section, or the same or substantially the same fact, circumstance or situation underlying or alleged therein;
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Insurance Community University
Summary
1. Every business client needs some form of business practices liability– D & O – Partnership Liability
2. Every business client with employees needs EPLI coverage
3. Every business client providing benefits to their employees needs Fiduciary Liability that includes EBLI
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Insurance Community University
Conclusion
4. All presentations are archived on the University homepage – just go to the tab labeled Webinar Archive
5. Check back often in both the Community and University for new items that are being added every week
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Insurance Community University
Upcoming ClassesUpcoming University/Paid CE ClassesCyber Liability and the Personal Lines Account
FREE to University Members$50.00/charge for non university members
10/10 Manufacturers - Insurance Coverages that are Unique and Essential to Consider
10/15 Voluntary Benefits
10/17 Agricultural Equipment Breakdown
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Join the University TODAY. www.insurancecommunitycenter.comClick Join University at the top of the bar
Upcoming Community Classes FREE to University Members$25.00/charge for non university members
10/22 Cyber Liability and the Personal Lines Account