Membership Benefits Program Memo

TO:                 Roger E. Benson                                 

FROM:           Phil Occhino

DATE:            9/13/01

SUBJECT:     Insurance Benefits
 

All PEF members are covered by the following two policies which are paid for by the PEF Membership Benefits Program:

Assault Trauma And Captivity (ATAC) coverage which pays a benefit for criminal assaults, accidental death and dismemberment.

$15,000 Accidental Death and Dismemberment Policy

Both policies contain exclusions for losses as a result of war and acts of war, declared or undeclared.  We are currently discussing coverage under these policies with the insurance companies to see if benefits are payable.  In addition, the ATAC policy is being reviewed to determine if these events meet the definition of a criminal assault.

Both Hartford Insurance Company and First UNUM have been sensitive to our situation and are working with their reinsurers, many of whom are in other countries, to achieve a resolution.  As you are aware, all insurance companies are reinsured by a few major companies (such as Lloyds of London and Germany’s Munich Re) and we expect a uniform decision. 

As soon as I have a definitive answer on these issues, I will contact you immediately. 

Additional Benefits

Individual PEF members may be enrolled in Term Life Insurance, Universal Life Insurance, Short Term Disability, Long Term Disability and the In-Hospital Insurance.  Anyone wishing more information should contact Membership Benefits at 800 342-4306, ext. 243 and a management staff person will discuss benefits payable under these plans.