STA ST Paul Travelers

Mutual fund directors will have access to an extra level of protection for their personal assets under a new product introduced today by Travelers. Travelers SelectOneSM Broad Form for Mutual Fund Directors will cover directors of mutual funds for non-indemnifiable claims or those where underlying insurance does not respond. The broad form provides an additional layer of excess non-indemnifiable coverage for individual mutual fund directors to protect them in a variety of situations including the following: A large securities claim is filed against the mutual fund and depletes underlying program limits or an underlying carrier becomes insolvent and is unable to pay the claim. A mutual fund is unwilling or unable to indemnify a director for costs associated with litigation. The Securities and Exchange Commission takes control over a financially troubled mutual fund and freezes its assets, including its policies. In that event, the policy proceeds of the Travelers SelectOneSM Broad Form would not be deemed assets of the fund and subject to the SEC�s control or automatic stay under bankruptcy law because the policy limit is dedicated solely to the mutual fund directors. �Many mutual fund directors, particularly those who are independent directors, want to ensure that their responsibility to the board doesn�t end up affecting their personal assets,� said Steve Boughal, second vice president, mutual funds and investment funds. �This broad form will provide directors with that added level of protection.� In addition, the broad form contains a Difference in Conditions (DIC) feature which is designed to fill in certain coverage gaps resulting from exclusions often found in traditional primary D&O policies. For example, an excessive fees claim that might be excluded from underlying coverage may be covered under the broad form. The broad form also includes a full severability feature meaning only those individuals who knew facts that should have been but were not truthfully disclosed to an insurance company during the underwriting process may lose their coverage. In addition, the form is fully non-rescindable so it can�t be voided for any reason. The broad form can be written to complement Travelers SelectOneSM for Investment Advisers and Funds policy or to supplement other D&O primary coverage. Travelers has been underwriting mutual fund investment advisers and funds since 1988. Travelers SelectOneSM Broad Form for Mutual Fund Directors is an admitted product and will be available in most states, Guam and the Virgin Islands. About Travelers 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. Travelers is a business of The St. Paul Travelers Companies, Inc. (NYSE:STA), 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, financial and professional services, global technology and public sector services. St. Paul Travelers is ranked 85 in the Fortune 500, with 2005 revenues of $24.4 billion and total assets of $113.2 billion. The company has approximately 32,000 employees. Mutual fund directors will have access to an extra level of protection for their personal assets under a new product introduced today by Travelers. Travelers SelectOne(SM) Broad Form for Mutual Fund Directors will cover directors of mutual funds for non-indemnifiable claims or those where underlying insurance does not respond. The broad form provides an additional layer of excess non-indemnifiable coverage for individual mutual fund directors to protect them in a variety of situations including the following: -- A large securities claim is filed against the mutual fund and depletes underlying program limits or an underlying carrier becomes insolvent and is unable to pay the claim. -- A mutual fund is unwilling or unable to indemnify a director for costs associated with litigation. -- The Securities and Exchange Commission takes control over a financially troubled mutual fund and freezes its assets, including its policies. In that event, the policy proceeds of the Travelers SelectOne(SM) Broad Form would not be deemed assets of the fund and subject to the SEC's control or automatic stay under bankruptcy law because the policy limit is dedicated solely to the mutual fund directors. "Many mutual fund directors, particularly those who are independent directors, want to ensure that their responsibility to the board doesn't end up affecting their personal assets," said Steve Boughal, second vice president, mutual funds and investment funds. "This broad form will provide directors with that added level of protection." In addition, the broad form contains a Difference in Conditions (DIC) feature which is designed to fill in certain coverage gaps resulting from exclusions often found in traditional primary D&O policies. For example, an excessive fees claim that might be excluded from underlying coverage may be covered under the broad form. The broad form also includes a full severability feature meaning only those individuals who knew facts that should have been but were not truthfully disclosed to an insurance company during the underwriting process may lose their coverage. In addition, the form is fully non-rescindable so it can't be voided for any reason. The broad form can be written to complement Travelers SelectOne(SM) for Investment Advisers and Funds policy or to supplement other D&O primary coverage. Travelers has been underwriting mutual fund investment advisers and funds since 1988. Travelers SelectOne(SM) Broad Form for Mutual Fund Directors is an admitted product and will be available in most states, Guam and the Virgin Islands. About Travelers 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. Travelers is a business of The St. Paul Travelers Companies, Inc. (NYSE:STA), 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, financial and professional services, global technology and public sector services. St. Paul Travelers is ranked 85 in the Fortune 500, with 2005 revenues of $24.4 billion and total assets of $113.2 billion. The company has approximately 32,000 employees.