Fiduciary Liability Insurance

Foundation Publication Search Results

These summaries were compiled from Foundation Publications Search, a database of articles, research reports and books published by the International Foundation and the International Society of Certified Employee Benefit Specialists.


Trustee Handbook: A Guide to Labor-Management Employee Benefit Plans.
Beebe, Lawrence R.; 529 pp 8th ed.; book

Availability : International Foundation of Employee Benefit Plans
Abstract : A reference tool for trustees, administrators and others who serve multiemployer benefit plans, this book includes a collection of practical articles covering fiduciary responsibility, plan design and financing, plan administration, liability insurance, actuarial considerations, accounting, investment management and much more. Additional topics include: educational policies and reimbursement of plan expenses; using committees effectively; running an apprenticeship program like a business; and using social media as a communications tool.
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Trends in Fiduciary Liability Insurance: What New Coverage Does Your Employee Benefit Plan Need?
Aronowitz, Daniel; Benefits Magazine; v52 no6 pp 18-24 Jun 2015; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : Evolving demands have led to important expansions in fiduciary liability insurance coverage, no longer limited to protecting trustees from fiduciary breaches and administrative errors. Enhanced policies cover the cost of plan corrections made through voluntary compliance programs, settlor and nonfiduciary claims, defense costs associated with regulatory investigations and regulatory penalties, which may not be paid from plan assets. Cyberrisks and causes of action arising from the Affordable Care Act, the Health Insurance Portability and Affordability Act and other federal laws create additional liabilities requiring protection. Coverage of benefit overpayment claims and surcharges as equitable relief remedies under ERISA Section 502(a)(3) may or may not be covered.
[0166850]

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Employee Benefits in Canada.
Zigler, Mark, D.; Hunter, Cameron; Gold, Murray; Mazzuca, Michael; Tomassini, Roberto; 615 pp 4th ed. 2015; book

Availability : International Foundation of Employee Benefit Plans
Abstract : A survey report on educational benefits offered by International Foundation members across the United States. The survey evaluates the most prevalent types of educational assistance/tuition reimbursement benefit programs offered by single and public employers, along with the characteristics of offerings, progress requirements and limitations and future strategies and implications.
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Insurer Breached Fiduciary Protection Policy for ERISA Settlement Reimbursement.
Benefits Magazine; v51 no12 p 63 Dec 2014; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : In International Game Technology, Inc. v. Federal Insurance Company the District Court for the District of Nevada found that the defendant insurance company breached its obligation to provide fiduciary protection to the plaintiff client. The defendant provided a fiduciary insurance policy that included exclusions for certain securities issues. The court found that the policy was ambiguous, creating multiple reasonable expectations of coverage, and therefore by state law must be interpreted in favor of the insured party. It therefore denied summary judgment for the defendant on the breach of contract claim. It did, however, find that the defendant did not breach its implied covenant of good faith and fair dealing.
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Insurance Protection for ERISA Funds: What New (and Even Veteran) Trustees Need to Know.
Smith, Brian L.; Semo, Joseph; Benefits Magazine; v50 no4 pp 34-39 Apr 2013; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : The purchase of commercial insurance or benefit plan insurance is a vitally important but complex subject for plan trustees. The fidelity bond and the fiduciary liability policy are the most important forms of insurance for a benefit plan. ERISA requires a fidelity bond with a value of ten percent of plan assets for all fiduciaries and others who handle plan assets. Fiduciary liability coverage, while not required by ERISA, is considered mandatory by most plans because it protects the plan from third-party claims. Fiduciaries and trustees should also consider other types of insurance, including general liability insurance, auto insurance and an umbrella policy.
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Best Practices in Fiduciary Risk Mitigation.
Kjar, Steven P.; Benefits Magazine; v49 no2 pp 42-46 Feb 2012; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : Fiduciary risk management is important for all plan sponsors, as legal cases show that fiduciary breaches can create significant liability. Common risks include lack of a properly reviewed investment policy statement (IPS), lack of plan governance, inaction when issues are discovered and failure to make timely contributions. Sponsors can mitigate these risks by getting expert help for nonexperts, creating a retirement plan committee to take responsibility for the plan, writing an IPS, and knowing the plan as well as its contracts, services, expenses and revenues. Fiduciaries should make sure they know their responsibilities, know their cofiduciaries, keep the plan following a documented process and get proper fiduciary insurance and bonding.
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Murky Waters: Clearing Confusion About Fiduciary Bonds, Insurance and Indemnification.
Steinhart, Bridget L.; Benefits Quarterly; v28 no1 pp 38-40 1st Qtr 2012; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : Considerable confusion exists over fiduciaries' financial exposure and what protections are available. Pension fiduciaries feel more comfortable about their positions and jobs when they know they are insured and indemnified. Fidelity bonds cover fraud and theft, employee benefits liability and administrative liability insurance covers recordkeeping errors and omissions, and directors and officers insurance covers legal fees and settlements from fraud or misuse of funds by those individuals. None of these cover fiduciary breaches, which require specific fiduciary liability insurance. Indemnification coverage protects fiduciaries from additional legal action by the organization and can pay extra legal expenses. Knowledge of and compliance with plan fiduciary governance requirements helps avoid most troubles.
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Trustee Handbook: A Guide to Labor-Management Employee Benefit Plans.
Kordus, Claude L.; 453 pp 7th ed.; book

Availability : International Foundation of Employee Benefit Plans
Abstract : The reference tool for trustees and professionals who serve multiemployer funds includes a collection of practical articles covering fiduciary responsibility, plan design and financing, liability insurance, actuarial considerations, accounting, plan administration and investment management. Additional topics include: pension plan mergers; acillary benefits; alternative investment options; understanding financial statements; apprenticeship and training programs.
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Fiduciary Oversight: Strategy and Tactics.
Boucher, David P.; Benefits & Compensation Digest; v47 no11 pp 36-38 Nov 2010; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : The primary responsibility for fiduciaries with defined contribution pension plans is to serve plan members' interests above all else. This includes keeping fees reasonable, a point reinforced by the DOL's anticipated disclosure rules. Plan sponsors should follow all best practices such as establishing a plan investment committee with bylaws and clear roles and responsibilities, creating an investment policy statement and diligently documenting all meetings, decisions and actions. Plan directors and officers should also protect themselves through fiduciary liability insurance.
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Trends in Fiduciary Liability Coverage.
Slevin, Barry S.; Benefits & Compensation Digest; v47 no5 pp 16-22 May 2010; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : Plan fiduciaries' response to ERISA fiduciary responsibility mandates should start with knowledge and involve both prevention and liability insurance. Apart from prudent action, fiduciaries can avoid liability by formally delegating certain duties and obtaining indemnification agreements from the appointed party. Service provider contracts should have sufficient financial security to satisfy a claim and usually indemnify the plan. Fiduciary liability insurance covers fiduciaries for a breach of fiduciary responsibility and plan administrative errors. Fidelity bonds cover fiduciaries and others for losses resulting from fraud and other criminal acts. Insurance should also be considered to cover specific legal mandates for plan operational details such as data security.
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Merging Multiemployer Health and Welfare Funds: A Practical Guide.
Whitehead, Mitchel D.; Grove, Carrie J.; Waddles, Nicholas J.; Benefits & Compensation Digest; v45 no12 pp 28-33 Dec 2008; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : Although multiemployer pension plan mergers are heavily regulated by the Employee Retirement Income Security Act (ERISA), there is almost no ERISA regulation of multiemployer health and welfare fund mergers, and very little published guidance on the topic. These mergers are difficult and time-consuming, and require careful attention from trustees of the affected plans. There are legal and practical issues that should be considered by the trustees and the appropriate plan professionals.
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Fiduciary Liability Insurance for Trustees: What Are You Missing?
McCreary, Michael C. P.; Clynick, Carrie L.; Canadian Benefits & Compensation Digest; v26 no1 pp 11-13 Feb 2008; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : Plan trustees need to understand what their fiduciary liability insurance covers. All policies contain conditions that must be fulfilled before, during and after a claim. The average policy also contains nine to 19 exemptions or exclusions including the requirement that any previous or pending claims be disclosed before the policy is purchased. Liability policies will not protect fiduciaries against criminal or fraudulent acts. Trustees must give written notice with particulars as soon as possible concerning a claim. If a claim is injunctive but not monetary, the policy will not cover it, nor will it cover claims of libel, slander, defamation or bodily injury.
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