Executive Group Personal Excess Liability Insurance Program Summary (Revised June 2001)

Contract Categories: Human Resources › Compensation Agreements
Summary

This document summarizes the Executive Group Personal Excess Liability Insurance Program, which provides eligible executives with up to $5,000,000 in additional liability coverage beyond their primary personal insurance policies. The coverage applies after primary insurance is exhausted and includes legal defense costs from the first dollar, subject to a $250 deductible. To qualify, executives must maintain specified minimum liability limits on their personal policies. The company pays the premium, which is treated as taxable income, but a 'gross-up' provision ensures the benefit is provided at no cost to the executive.

Read More Arrow
EX-10.(II) 4 c64228ex10-ii.txt EXECUTIVE GRP. PERSONAL EXCESS LIABILITY INSR. SUM 1 EXHIBIT 10 (ii) ATTACHED IS A REVISED SUMMARY DESCRIPTION OF THE EXECUTIVE GROUP PERSONAL EXCESS LIABILITY INSURANCE PROGRAM FOR YOUR EXECUTIVE BENEFITS BINDER. THE ONLY CHANGE IS IN THE LAST PARAGRAPH ON PAGE 2 OF THE CURRENT SUMMARY TO CLARIFY THE "GROSS-UP" PROVISION OF THE PROGRAM. THIS "GROSS-UP" PROVISION WAS ALWAYS PROVIDED UNDER THE PROGRAM, BUT WAS INADVERTENTLY OMITTED FROM THE DESCRIPTION OF THE PROGRAM THAT WAS ISSUED IN JUNE 2000. PLEASE INSERT THIS REVISED SUMMARY IN THE "PERSONAL EXCESS LIABILITY" TAB OF YOUR EXECUTIVE BENEFITS BINDER AND DISCARD THE CURRENT SUMMARY ALONG WITH THIS TRANSMITTAL NOTE. 2 EXECUTIVE GROUP PERSONAL EXCESS LIABILITY INSURANCE QUICK LOOK - - This program represents our continuing interest in your financial well-being and in allowing your focus to remain on the job without the potential distraction of a large damage claim. - - Executive Group Personal Excess Liability Insurance provides up to $5,000,000 in protection from this potential exposure. - - To qualify for this coverage, you must meet the general eligibility requirements for Executive Benefits (as defined on page i). IN DEPTH - - The policy will provide you with $5,000,000 of Personal Excess Liability coverage. - - The policy will go into effect after all your primary Personal Liability Insurance is exhausted and after a $250 deductible. - - Your legal defense costs are paid from the first dollar. - - Coverage is provided over the liability limits of your homeowner's, automobile, watercraft and recreational vehicle policies. LEGAL EASE - - This program is effective only when you maintain the following minimum limits of liability on your personal liability insurance:
--------------------------------------------------- ------------------------------------------------- CATEGORY LIABILITY - MINIMUM LIMITS --------------------------------------------------- ------------------------------------------------- PERSONAL LIABILITY (homeowner's) for personal $100,000 per occurrence injury and property damage --------------------------------------------------- ------------------------------------------------- RECREATIONAL VEHICLES (unregistered-- not $100,000 bodily injury and property damage each licensed for road use, such as mopeds, occurrence all-terrain vehicles, dune buggies, etc.) --------------------------------------------------- ------------------------------------------------- EACH CAR, TRUCK, VAN OR MOTORCYCLE (registered $250,000/$500,000 bodily injury and $100,000 vehicles) property damage; or $300,000 single limit each occurrence (includes motorcycles and motorhomes) --------------------------------------------------- ------------------------------------------------- WATERCRAFT $100,000 per occurrence --------------------------------------------------- ------------------------------------------------- UNINSURED MOTORISTS PROTECTION $250,000/$500,000 bodily injury or $300,000 single limit occurrence --------------------------------------------------- -------------------------------------------------
3 NOTE: The examples above are MINIMUM requirements. You should not make any changes to or cancel any existing policies without first consulting your professional insurance agent or broker. - - Costs for coverage under this program each year will be imputed income to you in the amount of the Company-paid premium on your behalf. As such, it will be taxable as ordinary income to you and will be reported on your W-2 for that year. However, the Company will provide a "gross up" so it is a no-cost benefit to you. REVISED - JUNE 2001