Employment Practices Liability Policy (For Claims Reported after December 31, 2002)  

Originally Adopted by MVRMA Board:  12/16/02

PURPOSE

The purpose of this policy is to define the limits and the scope of liability for which MVRMA would be financially responsible in the event a claim after December 31, 2002 is asserted against a member or any individual the member is obligated to indemnify or defend alleging an event which may result in the imposition of liability as a result of an employment practice.

COVERAGE STATEMENT

MVRMA agrees to indemnify and defend, subject to the limitations set forth herein, any claim asserted against a member or any individual the member is obligated to indemnify or defend arising out of an employment practice.

Losses with an occurrence date of January 1, 2001 through December 31, 2002 which are not reported until after January 30, 2003 will be self insured by MVRMA for the first $1,000,000.  MVRMA’s obligation to indemnify and defend shall be limited to those claims for which coverage would be available under the Employment Practice Liability (EPL) insurance policy purchased by MVRMA for its members, through American International Group (AIG), with an effective date of January 1, 2001.  In other words the AIG Employment Practice Liability insurance policy purchased by MVRMA with an effective date of January 1, 2001 shall define the nature and extent of coverage which MVRMA is willing to afford its members for those claims reported after January 30, 2003 with an occurrence date of January 1, 2001 through December 31, 2002.

For losses with an occurrence date after December 31, 2002, MVRMA’s obligation to indemnify and defend shall be limited to those claims for which coverage would be available under the Employment Practice Liability (EPL) insurance policy purchased by MVRMA for its members for the applicable loss year.