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Chubb Executive Risk Offers Employers a Solution For Handling Managed Care Litigation.

Announces Plan Purchaser Protection -- New Insurance Solutions

For Employers of All Sizes.

SIMSBURY, Conn., Nov. 15 /PRNewswire/ -- The recent public outcry for accountability in the managed care arena isn't limited to health maintenance organizations. Employees increasingly are seeking to hold employers responsible for a variety of managed care claims, ranging from negligent selection of managed care plans to bodily injury from denial of care.

Chubb Executive Risk, a subsidiary of the Chubb Corporation (NYSE: CB), announced it is responding with Plan Purchaser Protection, a new wave in insurance coverage that offers multiple solutions to help employers handle this new liability risk. This innovative new product allows employers to put meaningful and affordable coverage in place before any potential changes in the law increase their exposure. As a market leader in both Managed Care Errors and Omissions and Fiduciary Liability, Chubb Executive Risk is pleased to demonstrate the power of combining that expertise to create this proactive solution for employers.

Employers and managed care organizations have traditionally been protected from liability in this area by provisions of the Employee Retirement Income Security Act (ERISA), which limits the remedies available in suits involving employee benefit plans. State law remedies, including compensatory and punitive damages, have generally not been available in these cases because, as a federal statute,

ERISA preempts those state laws. However, some recent inconsistent applications of the ERISA preemption doctrine by several courts have resulted in rulings that may effectively decrease the scope of this prescription defense for employers.

"Managed care litigation against employers, large and small, is on the rise" said Carrie Brodzinski, fiduciary liability product manager, Chubb Executive Risk. "Negative publicity aimed at managed care is having a greater impact on employers. The plaintiffs' bar has already made significant strides in eroding the ERISA preemption doctrine, as evidenced by a number of successful attacks against employers who self-administer their health care plans." She added that experts expect court decisions and prospective legislative changes to continue eroding ERISA's protections for employers.

Chubb Executive Risk's new Plan Purchaser Protection offers employers a choice of two solutions to address this risk: an endorsement to an existing Chubb or Executive Risk fiduciary liability insurance product, or stand-alone coverage.

By endorsing Plan Purchaser Protection coverage to Chubb Executive Risk's Fiduciary Liability Insurance policy, employers gain enhanced bodily injury coverage for claims resulting from certain managed care exposures, including denial of, or delay in, providing benefits; allegations of negligent selection of managed care plans or service providers; and liability for payment of plaintiffs' legal expenses. "Traditional fiduciary liability coverage may not fully address these new types of managed care claims. Plan Purchaser Protection is specifically designed to fill in any potential coverage gaps," said Brodzinski.

Employers that take a more active role in the administration of their managed care plans, contract directly with providers, or offer medical care directly to their employees, face greater exposure to managed care claims. "For these employers, as well as for employers that choose not to cover this risk as part of their fiduciary liability insurance program, our Plan Purchaser Protection insurance policy offers enhanced coverage," said Susan Huntington, product manager, Chubb Executive Risk. "In addition to the coverage provided in the endorsement, the stand-alone policy also covers employers' direct and vicarious liability for breach of confidentiality; claims services, utilization review, and case management activities; and vicarious liability for medical malpractice. The Plan Purchaser Protection policy offers coverage for all major health benefit plans, including health, vision, and dental," she said.

For more information about Plan Purchaser Protection, to arrange a quote, or for additional information about Chubb Executive Risk and its products and services, please contact the Marketing/Communications Team at 800.432.8168, fax 860.408.2288, email, or check us out on the web at

Member insurers of the Chubb Group of Insurance Companies form a multi- billion dollar organization providing property and casualty insurance for personal and commercial customers worldwide through 5,000 independent agents and brokers. Chubb's global network includes branches and affiliates throughout North America, Europe, Latin America, Asia and Australia. More information on Chubb can be found on the company's Web site at
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Publication:PR Newswire
Date:Nov 15, 1999
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