Travelers Introduces Side A DIC Coverage Dedicated to Mutual Fund Directors

  
    
  
  
    
      Mutual fund directors will have access to an extra level of protection 
      for their personal assets under a new product introduced today by 
      Travelers.
    
    
      Travelers SelectOneSM Broad Form for Mutual 
      Fund Directors will cover directors of mutual funds for 
      non-indemnifiable claims or those where underlying insurance does not 
      respond. The broad form provides an additional layer of excess 
      non-indemnifiable coverage for individual mutual fund directors to 
      protect them in a variety of situations including the following:
    
    
      
        A large securities claim is filed against the mutual fund and depletes 
        underlying program limits or an underlying carrier becomes insolvent 
        and is unable to pay the claim.
      
      
        A mutual fund is unwilling or unable to indemnify a director for costs 
        associated with litigation.
      
      
        The Securities and Exchange Commission takes control over a 
        financially troubled mutual fund and freezes its assets, including its 
        policies. In that event, the policy proceeds of the Travelers SelectOneSM 
        Broad Form would not be deemed assets of the fund and subject to the 
        SEC’s control or automatic stay under 
        bankruptcy law because the policy limit is dedicated solely to the 
        mutual fund directors.
      
    
    
      “Many mutual fund directors, particularly 
      those who are independent directors, want to ensure that their 
      responsibility to the board doesn’t end up 
      affecting their personal assets,” said Steve 
      Boughal, second vice president, mutual funds and investment funds. “This 
      broad form will provide directors with that added level of protection.”
    
    
      In addition, the broad form contains a Difference in Conditions (DIC) 
      feature which is designed to fill in certain coverage gaps resulting 
      from exclusions often found in traditional primary D&O policies. For 
      example, an excessive fees claim that might be excluded from underlying 
      coverage may be covered under the broad form.
    
    
      The broad form also includes a full severability feature meaning only 
      those individuals who knew facts that should have been but were not 
      truthfully disclosed to an insurance company during the underwriting 
      process may lose their coverage. In addition, the form is fully 
      non-rescindable so it can’t be voided for any 
      reason.
    
    
      The broad form can be written to complement Travelers SelectOneSM 
      for Investment Advisers and Funds policy or to supplement other D&O 
      primary coverage.
    
    
      Travelers has been underwriting mutual fund investment advisers and 
      funds since 1988. Travelers SelectOneSM Broad 
      Form for Mutual Fund Directors is an admitted product and will be 
      available in most states, Guam and the Virgin Islands.
    
    
      About Travelers
    
    
      Travelers understands that life and business are inherently dynamic and 
      that the best way to serve agents and policyholders is to deliver 
      insurance that evolves to stay in-synch with life and business as they 
      change. For more information on being in-synch, visit www.travelers.com.
    
    
      Travelers is a business of The St. Paul Travelers Companies, Inc. 
      (NYSE:STA), a leading property casualty insurer selling primarily 
      through independent agents and brokers. The company’s 
      diverse business lines offer its global customers a wide range of 
      coverage in both the personal and commercial settings, including 
      automobile, homeowners, construction, small business, oil and gas, ocean 
      marine, financial and professional services, global technology and 
      public sector services. St. Paul Travelers is ranked 85 in the Fortune 
      500, with 2005 revenues of $24.4 billion and total assets of $113.2 
      billion. The company has approximately 32,000 employees.
    
  
Mutual fund directors will have access to an extra level of
protection for their personal assets under a new product introduced
today by Travelers.

   Travelers SelectOne(SM) Broad Form for Mutual Fund Directors will
cover directors of mutual funds for non-indemnifiable claims or those
where underlying insurance does not respond. The broad form provides
an additional layer of excess non-indemnifiable coverage for
individual mutual fund directors to protect them in a variety of
situations including the following:

   --  A large securities claim is filed against the mutual fund and
        depletes underlying program limits or an underlying carrier
        becomes insolvent and is unable to pay the claim.

   --  A mutual fund is unwilling or unable to indemnify a director
        for costs associated with litigation.

   --  The Securities and Exchange Commission takes control over a
        financially troubled mutual fund and freezes its assets,
        including its policies. In that event, the policy proceeds of
        the Travelers SelectOne(SM) Broad Form would not be deemed
        assets of the fund and subject to the SEC's control or
        automatic stay under bankruptcy law because the policy limit
        is dedicated solely to the mutual fund directors.

   "Many mutual fund directors, particularly those who are
independent directors, want to ensure that their responsibility to the
board doesn't end up affecting their personal assets," said Steve
Boughal, second vice president, mutual funds and investment funds.
"This broad form will provide directors with that added level of
protection."

   In addition, the broad form contains a Difference in Conditions
(DIC) feature which is designed to fill in certain coverage gaps
resulting from exclusions often found in traditional primary D&O
policies. For example, an excessive fees claim that might be excluded
from underlying coverage may be covered under the broad form.

   The broad form also includes a full severability feature meaning
only those individuals who knew facts that should have been but were
not truthfully disclosed to an insurance company during the
underwriting process may lose their coverage. In addition, the form is
fully non-rescindable so it can't be voided for any reason.

   The broad form can be written to complement Travelers
SelectOne(SM) for Investment Advisers and Funds policy or to
supplement other D&O primary coverage.

   Travelers has been underwriting mutual fund investment advisers
and funds since 1988. Travelers SelectOne(SM) Broad Form for Mutual
Fund Directors is an admitted product and will be available in most
states, Guam and the Virgin Islands.

   About Travelers

   Travelers understands that life and business are inherently
dynamic and that the best way to serve agents and policyholders is to
deliver insurance that evolves to stay in-synch with life and business
as they change. For more information on being in-synch, visit
www.travelers.com.

   Travelers is a business of The St. Paul Travelers Companies, Inc.
(NYSE:STA), a leading property casualty insurer selling primarily
through independent agents and brokers. The company's diverse business
lines offer its global customers a wide range of coverage in both the
personal and commercial settings, including automobile, homeowners,
construction, small business, oil and gas, ocean marine, financial and
professional services, global technology and public sector services.
St. Paul Travelers is ranked 85 in the Fortune 500, with 2005 revenues
of $24.4 billion and total assets of $113.2 billion. The company has
approximately 32,000 employees.