ACE USA, a subsidiary of ACE Limited (NYSE: ACL), announced today that the Directors & Officers Division has expanded its financial institutions coverage portfolio with the introduction of three new coverage parts for the mutual fund and investment advisor market.
Vice President Gregg Rentko, who heads the New York-based Financial Institutions Department of the D&O division at ACE USA, said that coverage parts available utilize the General Terms & Conditions of the recently released Management Protection Insurance Policy. This blended policy includes Directors and Officers Liability for Investment Advisors and/or Mutual Funds; Fiduciary Liability; Employment Practices Liability; Professional Liability coverage for Investment Advisors, Mutual Funds and Financial Service Providers (i.e. Distributors); and Investment Company Fidelity.
"The newly released coverage parts can be written for investment advisors with at least $50,000,000 in funds under management and most SEC registered mutual funds with net asset values greater than $100,000,000." said Mr. Rentko.
Mr. Rentko noted that, "Current economic developments have created ever increasing fiduciary responsibilities on investment advisers and mutual fund management. The ACE USA coverage parts are drafted to provide the broad levels of protection needed by today's adviser and mutual fund, including coverage for vicarious liability and punitive and exemplary damages."
Similar to the Management Protection Insurance policy, insureds can purchase a stand-alone policy for each coverage part or include all of the coverage parts under one policy. Limits of liability can be provided either as a single aggregate for all coverage parts or separate limits of liability for each coverage part. The limit of liability available for any individual coverage part is $25,000,000. Coverage will be initially offered on a non-admitted basis, through Westchester Surplus Lines Insurance Company (A /IX).
ACE USA, formerly Westchester Specialty Group, is a subsidiary of ACE Limited and is headquartered in Atlanta with offices in New York, San Francisco, Los Angeles and New Orleans.
On January 12, 1999, ACE Limited announced it had agreed to acquire the international and domestic property and casualty insurance business of CIGNA Corporation for $3.45 billion in cash. The transaction, which is subject to receipt of necessary regulatory approvals and other customary closing conditions, is expected to be completed by July 1, 1999.
The ACE Group of Companies provides insurance and reinsurance to a diverse group of international clients. Operating subsidiaries are based in Bermuda, the United States, the United Kingdom (Lloyd's), and the Republic of Ireland. At March 31, 1999, ACE Limited had approximately $8.9 billion in assets and approximately $4.0 billion in shareholders' equity.