SAINT PAUL, Minn.--(BUSINESS WIRE)--April 20, 2006--Directors and
officers of companies in Canada will have broader protection for
claims made against their personal assets under a new Directors' and
Officers' policy introduced today by St. Paul Travelers (NYSE:STA).
The Executive Choice(TM) Plus provides coverage for "Side A"
non-indemnifiable claims or claims that can't be reimbursed by a
company such as derivative lawsuits or those that result from
corporate insolvency. In addition, the policy includes a difference in
conditions feature which means that the policy is structured to
provide broader coverage than the Side A coverage found in most
traditional directors and officers policies. The Executive Choice(TM)
Plus policy includes fewer exclusions. For example, claims resulting
from a violation of the responsibilities, obligations or duties
imposed by Canada's Pension Benefits Standards Act or under ERISA are
not excluded under the policy. In addition, there is no pollution
exclusion contained in the policy.
"The recent high-profile corporate scandals in the U.S. and Canada
involving directors and officers has caused many serving on boards to
become concerned about whether they have appropriate insurance
coverage in place," said Phil Baker, vice president, Financial and
Professional Services, Canada. "The Executive Choice(TM) Plus policy
will give companies an opportunity to access a much-needed level of
protection for directors and officers that wasn't previously available
in the Canadian marketplace."
The Executive Choice(TM) Plus policy will provide protection when
the primary insurance company wrongfully refuses to cover a loss,
rescinds the primary policy or is financially unable to pay a loss. In
addition, one feature of the Executive Choice(TM) Plus policy allows
it to become the primary insurance coverage for some claims that are
excluded under a traditional Side A directors and officers policy.
Another advantage of the Executive Choice(TM) Plus policy is that it
provides an additional source of excess coverage for directors and
officers in situations where the corporation cannot or will not
indemnify.
The Executive Choice(TM) Plus directors and officers liability
policy is currently available from independent brokers located
throughout Canada. For more information, visit the St. Paul Travelers
Canada Web site at www.stpaulinsurance.ca/ or contact your local D&O
underwriter.
St. Paul Travelers is a leading provider of property and casualty
insurance. For more information, visit www.stpaultravelers.com.
CONTACT: St. Paul Travelers, Saint Paul
Media Contact:
Kim O'Connell, 651-310-2883
SOURCE: St. Paul Travelers