What the form is
The MP DS 02, titled "Executive Liability and Entity Securities Liability Coverage Part Declarations Form," serves as the declarations page for a management protection liability policy. As a declarations page, it doesn't provide coverage itself but rather customizes and outlines the specific details of the coverage provided by the accompanying coverage form(s). It typically includes essential information such as the named insureds (including directors, officers, and the entity itself), the policy period, limits of liability for different coverage sections, retention or deductible amounts, the premium, and a list of endorsements attached to the policy.
Classes of business it applies to
This form is used for various types of organizations, both publicly traded and privately held companies, that purchase Executive Liability or Directors and Officers (D&O) liability insurance, as well as Entity Securities Liability coverage. Examples include:
- Companies concerned about lawsuits alleging wrongful acts committed by their directors and officers in their managerial capacity.
- Organizations facing potential claims related to the offering, sale, or purchase of their securities.
- Financial institutions may also utilize specific versions of this declarations page for their executive liability coverage.
Special considerations
The MP DS 02 is a critical component of the insurance contract. Accuracy in completing this form is paramount, as it reflects the agreed-upon terms and conditions. Any discrepancies or errors on the declarations page can lead to significant coverage disputes in the event of a claim. This form must always be used in conjunction with the corresponding Executive Liability and Entity Securities Liability coverage form(s) (e.g., MP 00 01, MP 00 02) and any applicable endorsements. The specific edition date of the MP DS 02 should align with the policy period and the edition dates of the other forms used in the policy to ensure consistency.
Key information for agents and underwriters
For Agents: Ensure all information, especially named insureds, limits, and retro-active dates (if any), is accurately transcribed and clearly communicated to the client. This form is a key document for explaining the scope of coverage and the insured's obligations.
For Underwriters: This declarations page is the definitive summary of the risk accepted. It should be meticulously reviewed to confirm that the policy details accurately reflect the underwriting intent, including the agreed limits, retention, premium, and any special conditions or restrictions. The edition date of this form is important for regulatory compliance and ensuring the correct policy terms are applied. Underwriters should also verify that all required endorsements are listed.