September 7, 1990
TO: INVESTMENT ADVISER ASSOCIATE MEMBERS NO. 39-90
RE: QUESTIONNAIRE ON INVESTMENT ADVISER E & O INSURANCE
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A number of associate members of the Investment Company
Institute have made inquiries on the availability of E & O insurance
for investment advisers.
As you may be aware, in early 1988 the Institute sponsored the
formation of a captive insurance company, ICI Mutual, to provide
fidelity bonds and D&O/E&O liability insurance for mutual funds. An
attempt, at that time, to include investment advisers (not advising
a mutual fund) was not feasible.
ICI Mutual Insurance Company has successfully written the
fidelity bond and D&O/E&O insurance for investment company members
since March 1988, and is now in a position to review the exposure
and risks associated with writing investment advisers errors and
omissions insurance as well as review other related insurance
coverages.
In order to determine the feasibility of writing E & O
insurance for investment advisers, we have prepared and enclosed a
second more comprehensive questionnaire that centers around current
insurance coverages carried and the related loss history. Please
note, it is very important that this information be answered as
completely as possible.
All individual firm data submitted on this survey will be kept
on a confidential basis by ICI Mutual Insurance Company. The sole
purpose of the survey is to develop a data base in order to evaluate
the feasibility of offering investment advisers errors and omissions
insurance to associate members of ICI.
Any questions you have regarding this survey may be referred
for Joe Harvey's attention at the Investment Company Institute. You
may reach him on (202) 955-3582.
Thank you for your interest and participation in this survey.
Donald E. O'Connor
Vice President - Operations
Enclosure