Investment Adviser and Fund Professional and Directors' & Officers' Liability

Overview
The changing scope of Corporate America has led to more frequent and microscopic accountability of performance results for investment professionals who are at the mercy of the economy, investors and state and regulatory agencies. Many are finding themselves under intense scrutiny as they struggle to make decisions that affect the funds they manage and their clients' portfolios.

In a fluctuating, often unstable environment that breeds corporate scandals and shareholder lawsuits, anyone involved in managing money and offering financial advice is at risk for Directors' & Officers' (D&O) and Errors & Omissions (E&O) liability.

PIA's comprehensive program applies to investment funds and investment advisers, enabling investment professionals to take on significant responsibilities without fear of reprisal. Our program provides them with assurance of protection against liability for errors of judgment, indemnifies individuals for losses when the companies they represent cannot afford to do so for legal or financial reasons, and reimburses those companies that can indemnify those individuals for wrongful acts committed on the Company's behalf.

Our benchmark policy covers D&O and E&O exposures for investment funds, and stand-alone E&O for investment advisers. A policy can be tailored to cover the funds only, the adviser only, or both the funds and the advisers to those funds. Optional coverages include D&O for the adviser, services provider E&O, employment practices liability and fiduciary liability for in-house employee benefit plans.

Policy Highlights:

• Coverage available to registered investment advisers and funds, including hedge funds
• Mandatory advancement of costs, charges and expenses under all Insuring Agreements
• Estate, representative and spousal coverage
• Full prior acts coverage
• Contractual liability exclusion does not apply to adviser activities, fund activities or professional services, as defined by the Policy
• Worldwide coverage
• Covers punitive damages where insurable by applicable law
• Claims made against independent directors are not excluded
• No "hammer clause"
• No failure to maintain insurance exclusion
• Severability of intentional act exclusions and the application

Limits of up to $15 million are available on a both a primary and excess basis. The policies are written through Houston Casualty Company, HCC Specialty Insurance Company or U.S. Specialty Insurance Company on both an admitted and surplus lines basis. All are rated A+ by A.M. Best Company and AA by Standard & Poor's.