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SERVING ON A BOARD MAY BE HAZARDOUS TO YOUR FINANCIAL HEALTH

 SIMSBURY, Conn., July 12 /PRNewswire/ -- Serving on a non-profit board of directors may put your personal finances at risk if you are not properly insured, according to Executive Risk Management Associates, the directors and officers liability insurance underwriters for The Aetna Casualty and Surety Company. Non-profit board members can be sued for wrongful decisions or negligence. Executive Risk offers a special kind of insurance, called directors and officers liability insurance (D&O) which protects against the financial damages of a lawsuit and also pays for associated legal defense expenses.
 "Although many states have enacted legislation that tries to limit the exposure of non-profit directors, it only provides protection on a state level," explains Tracy Brunoli, who heads Executive Risk's team of Non-profit D&O Underwriters. "In this economy, even non-profits need to be concerned about the cost of defending against employment-related suits like wrongful termination and discrimination which are federal EEOC violations. Unfortunately, no organization, no matter how civic- minded, is immune from lawsuits and the defense costs that follow."
 "Our policy pays legal expenses as they are incurred, which many people assume will be the case," says Brunoli. "But often, they find out too late that their policy stipulates legal expense reimbursements will be forwarded after a settlement is reached. Having the ability to mount a vigorous defense is an important first step in suits of this kind. If your policy doesn't offer this coverage, insureds are forced to pay legal bills while the case is being settled. And some claims take years to settle."
 Many people also assume these claims are covered under their personal umbrella policies. "This is an incorrect assumption, D&O claims are not covered under personal umbrella policies," says Brunoli.
 Aetna's new D&O policy is specifically designed and priced for community service non-profit organizations, such as libraries, garden clubs, girls and boys clubs, scout groups, etc. It protects not only the board and executives of the organization, but also all volunteers, reflecting the reality of non-profit staffing arrangements.
 Executive Risk Management Associates offers a free brochure, "Deciding To Read This Brochure Could Be The Safest Decision You Make All Day" that explains the board's exposures and how to protect against them. For a copy, call Executive Risk Management Associates at 1-800-432-8168.
 Executive Risk Management Associates, established in 1987, is a managing general agent of The Aetna Casualty and Surety Company and Executive Risk Inc. for directors and officers liability insurance. It is an open facility for all licensed agents and brokers in the United States and Puerto Rico.
 -0- 7/12/93
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TS -- NY074 -- 0560 07/12/93 16:21 EDT
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Date:Jul 12, 1993
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