What it does
MP 03 01 adds a co-insurance provision: the insured shares a percentage of covered loss under the coverage form to which it attaches. A second co-insurance endorsement (MP 03 02) is also filed; the two are used with different coverage forms or structures in the program.
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
Used by underwriters for higher-risk accounts or as a pricing option.
Quoting and selling notes
- Translate the percentage into dollars for a realistic claim.
- Check which coverage forms the endorsement applies to.
- Compare with quotes using only a retention.
