What it does
MP 00 07 is the fiduciary liability form of ISO's Management Protection program. It responds to claims alleging breach of fiduciary duty in managing employee benefit plans – for example imprudent investment options or excessive fees in a 401(k) plan. Plan-related endorsements include Coverage Extension – Merged, Sold, Spun-Off or Terminated Plans (MP 04 03), Coverage Extension – CAP Penalties (MP 04 04), and exclusions for conversion from a defined benefit plan (MP 21 36), employer stock (MP 21 37), recapture of assets (MP 21 38) and specified employee benefits (MP 21 39).
Program context
The ISO Management Protection (MP) program is a modular management liability policy: Common Policy Conditions (MP 00 03) shared by separate coverage forms for executive liability (D&O), executive and entity securities liability, financial institutions executive liability, not-for-profit management liability, fiduciary liability and Side A only. Forms lists show the Management Protection forms filed for use in Colorado, Iowa, Illinois, Indiana, Kansas, Minnesota, Missouri, North Dakota, Nebraska, Ohio, South Dakota, Wisconsin and Wyoming. The 10 06 and 05 09 editions are the current ones in forms lists; ISO filed a multistate Management Protection forms revision in 2008.
Who needs it
Any employer sponsoring a 401(k), pension, health or welfare plan; plan trustees and committee members.
Quoting and selling notes
- Fiduciary liability is different from the ERISA fidelity bond the law requires; clients often confuse them.
- Employee benefits liability (administrative errors) on a GL or BOP (for example BP 04 98) does not cover fiduciary breaches.
- Ask about plan assets, investment options, employer stock in plans and plan terminations or mergers.
