What it does
MP 21 06 excludes claims arising out of litigation or proceedings pending on, or filed before, the date stated in the endorsement. It is the standard way management liability policies keep known matters off a new policy.
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
Every new management liability account; the date matters most when moving coverage between carriers.
Quoting and selling notes
- Read the exclusion wording and any schedule with the client before binding.
- Ask what would allow removal at renewal.
- Compare competing management liability quotes for the same exclusion.
