The AFT Officials Liability Insurance Plan covers damages, judgments, out-of-court settlements, and defense costs arising from complaints of wrongful acts on the part of the union, union officials or representatives, including:

• Claims arising from negligent acts, errors or omissions in the performance of activities for the union.

• Charges of negligence in contract negotiations and enforcement; duty of fair representation; improper disciplinary action.

• Personal injury suits alleging slander, defamation of character, false arrest, wrongful detention, malicious prosecution, wrongful entry or invasion of the right of private occupancy.

• Charges of unfair labor practices at the National Labor Relations Board and during court proceedings.

• Publishers liability claims alleging libel, defamation, plagiarism, piracy or copyright infringement as a result of activities related to local publications.

• Defense costs for up to $100,000 for claims alleging wrongful termination, discrimination, harassment, etc.

• Up to $500,000 for each claim is provided for AFT affiliate organizations including State Federations, AFT Locals, FNHP Locals, FSE Locals, and Area Councils, with a $5,000,000 annual aggregate limit of liability.

• Insureds include the union itself and duly elected or appointed officers, directors, trustees, employees, board members, school delegates, committee members, and anyone acting on behalf of the union (except independent contractors).

• Coverage is written on a ìclaims madeî form. Only claims made and reported to the Insurance Company while this policy is in force for wrongful acts or personal injury on or after January 1, 1988 may be considered.

• The policy pays claims expenses incurred in the course of defending a covered lawsuit. Claims expenses are part of, not in addition to, the limit of liability.

• A deductible of 10% of each claim with a maximum of $10,000 per claim is included. The policy pays 100% of any uncovered loss or claim expense in excess of the deductible up to the $500,000 per claim limit.

• Up to $7,500 of protection is provided for injunctive action suits when relief other than monetary damages is claimed.

The policy contains the customary exclusions. For example, it does not insure you for dishonest, fraudulent, criminal or malicious acts or omissions; for any claims related to bodily injury, sickness, disease or death; for liability associated with Workerís Compensation Law, or for injury to, or destruction of property. The policy does not insure for losses covered under other valid policies for which notice of claim has been given, or claims arising from illegal strikes, work stoppages or slowdowns or other similar job actions.

Any situation which may result in a claim should be reported immediately in writing to the Administrator:

Seabury & Smith
AFT GROUP INSURANCE PLANS
1440 Renaissance Drive
Park Ridge, IL 60068-1400
Call Toll Free: 1-800-272-4AFT

To enhance the stability of the program, this policy is issued through a risk purchasing group (the Association Purchasing Group Association), located and domiciled in Illinois, (and to take advantage of recent legislation enacted by Congress known as the Federal Liability Risk Retention Act of 1986.) Coverage will be provided to the purchasing group by the Chicago Insurance Company, a member company of the Interstate Insurance Group.

The Outline of Benefits is not meant to replace the actual policy issued to the American Federation of Teachers. This outline is designed to merely highlight the important elements of the policy. In the event of any conflicts or ambiguity between the policy and the statements contained in this outline, the policy shall apply.