In consultation with the RMAC, we have developed a new basic D&O policy form. For some time, we have recognized improvements in the risk profiles of some members and the changing conditions in the D&O market by endorsing the old form. The new form will provide the desired coverage without the need for so many endorsements. The RMAC has enthusiastically supported this approach and the new form.
A working draft of the policy is posted in the Underwriting Products & Services section on the password-protected section of our website. This draft has benefited from the extensive comments of the RMAC, all of our major brokers, and legal specialists from Bailey Cavalieri and LeBoeuf, Lamb, Greene & MacRae. We believe this current version is close to what the final form will be, nevertheless, we want to make sure that every member has the opportunity to offer comments and suggestions before the policy form is finalized. We will leave the discussion open until July 1 and invite you to submit comments to Gil Gould. It would help us organize and process your ideas if you could submit your comments in writing.
After reviewing your comments, we plan to present the final form at the Wednesday morning general session of the Policyholders’ Conference in Vancouver. We will also hold two afternoon breakout sessions where you will be able to discuss the details of the final form with our D&O underwriters. The new form will be incorporated in renewals occurring on or after September 1, 2005.
Even with this broader basic form, some modification by endorsement may be required to make an individual member’s actual coverage narrower or even broader to accommodate specific situations. But we believe the new form will match up better with the risks presented by the majority of our members. We look forward to hearing from you.