ONTARIO, CANADA, June 13 2007 – Travelers today launched a major new enhancement to its SelectOne(SM) liability policy for investment advisors and funds in Canada. The company’s new Independent Review Committee Liability Insuring Agreement will provide superior liability protection to Independent Review Committee (IRC) members.
National Instrument 81-107 requires the creation of an IRC for each investment fund that is a reporting issuer. The Instrument prescribes the functions of the IRC and requires that fund managers submit conflict of interest matters arising out of fund management to the IRC for review. IRC members are charged with making recommendations to the fund manager as to how these conflicts may be resolved. Travelers IRC Liability Insurance Coverage provides superior protection to members of the IRC when the investment fund or the investment fund manager does not provide them with indemnification, and will reimburse the investment fund or advisor when it does provide indemnification.
“IRC members may face liability for breaches of their obligations under National Instrument 81-107, as well as potential liability for negligence, negligent misrepresentation and/or breach of fiduciary duty,” said Phil Baker, vice president, Travelers Financial and Professional Services in Canada. Baker notes, “Traditional Management Liability Insurance will not adequately protect the unique needs of the IRC members. Travelers created this policy to protect the personal assets of the IRC members by providing comprehensive dedicated coverage.” The IRC policy can be combined with the existing mutual funds’ liability coverage with either shared or separate limits or offered on a stand-alone basis.
Some of the coverage highlights include:
- Separate dedicated limit of liability for IRC members available;
- Independent Review Committee Member Individual Coverage may be purchased on a stand-alone basis or in conjunction with the mutual fund or advisor indemnification reimbursement coverage;
- Non-rescindable against the Independent Review Committee members;
- Broad definition of Wrongful Act which provides coverage for IRC members for errors committed in their capacity as IRC members – coverage is not limited to the activities set out in National Instrument 81-107; and
- No Insured vs. Insured exclusion.
Independent Review Committee Liability Insurance Coverage is currently available from independent brokers located throughout Canada. For more information regarding this product and other products offered by Travelers in Canada, please contact Phil Baker, vice president, Travelers Financial and Professional Services in Canada at [email protected] or visit www.travelerscanada.com.
Travelers understands that life and business are inherently dynamic and that the best way to serve agents and policyholders is to deliver insurance that evolves to stay in-synch with life and business as they change. For more information on being in-synch, visit www.travelers.com
The Travelers Companies, Inc. (NYSE:TRV) is a leading property casualty insurer selling primarily through independent agents and brokers. The company’s diverse business lines offer its global customers a wide range of coverage in both the personal and commercial settings, including automobile, homeowners, construction, small business, oil and gas, ocean marine, bond and financial products, global technology and public sector services. Travelers is a Fortune 100 company, with 2006 revenues of $25.09 billion and total assets of $113.76 billion. The company has approximately 33,000 employees.Tags: Travelers