Pension trustees, CNA breached ERISA: DOL. (Department of Labor)

National Underwriter Property & Casualty-Risk & Benefits Management, November, 1989 by Fisher, Mary Jane

Pension Trustees, CNA Breached ERISA: DOL WASHINGTON--The trustees of a pension plan violated ERISA by buying a fiduciary liability insurance policy from CNA which provided $1 million in coverage for $970,000, according to a civil complaint filed by the Labor Department. The insurer allegedly profited from the improper actions of the trustees as a result of the excessive premium charged the plans and by avoiding exposure to loss.

The complaint, filed in the U.S. District Court for the Northern District of Illinois at Chicago, names trustees of the Hotel Employees and Restaurant Employees Union pension and welfare plans and Continental Casualty Co. of Chicago and American Casualty Co. of Reading, Pa., members of Chicago-based CNA, as defendants. CNA was "a...

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