The McLaughlin Company: Labor Organization Bonds Guide

1. Labor Organization Bonds The McLaughlin Company Brenda Mantz The McLaughlin Company

2. Introduction • For 75 years, The McLaughlin Company has stood the test of time in support and service to the Organized Labor Movement • Over the years we have written Labor Organization Bond for twenty-three unions and handled more than 2,000 claims • Today, the company is the largest insurance provider for labor unions in the United States The McLaughlin Company

3. Agenda • Communication • How Unions are Organized • What the Insureds Expect • Responding to the Unique Requirements of Unions The McLaughlin Company

4. Communication • The questions to be considered when writing labor organization bonds are few but coming up with the right answers is not easy. The McLaughlin Company

5. Communication The McLaughlin Company

6. Communication • We are in the buffer zone The McLaughlin Company

7. How Unions are Organized Labor Unions fall into two categories • The National or International Union (International means they have membership in Canada.) • Local Unions (These are the units that represent the members directly – Local unions affiliate with each other and form the National organization.) The McLaughlin Company

8. How Unions are Organized • Not only are they subject to the Constitution and By-laws of a national organization, they are subject to a plethora of Federal Statutes and Regulations. While they are governed by Federal Regulations, they are also subject to the State Tort System. ByLaws LMRDA The McLaughlin Company

9. What the Insureds Expect • Honesty Only vs. Faithful Discharge FDD HONESTY The McLaughlin Company

10. What the Insureds Expect • How much coverage is required? HOW MUCH? The McLaughlin Company

11. What the Insureds Expect • Notice of Loss Notice The McLaughlin Company

12. What the Insureds Expect • Knowledge of Prior Dishonesty The McLaughlin Company

13. What the Insureds Expect • Payment of Claims $$ The McLaughlin Company

14. What the Insureds Expect • Denial of Claims The McLaughlin Company

15. Responding to the Unique Requirements of Unions • Labor Organizations have exposures that are unique The McLaughlin Company

16. Responding to the Unique Requirements of Unions • The Labor Organization Bond Form was developed to address these special requirements The McLaughlin Company

17. Responding to the Unique Requirements of Unions • The definition of employee is broadened under the Labor Organization Bond to include all persons who are required to be bonded under the Labor-Management Reporting and Disclosure Act (LMRDA). Bond Form The McLaughlin Company

18. Responding to the Unique Requirements of Unions • Next, the Labor Organization Bond is written without a deductible. Coverage applies to the first dollar of the loss. Most other employee dishonesty coverage is written with a deductible. Bond Form The McLaughlin Company

19. Responding to the Unique Requirements of Unions • Third, the coverage applies per person -- not per loss. If a loss occurs as a result of a collusive act - two or more individuals working together - the bond limit applies to each person. Under other bond forms the recovery would be limited to the amount of the bond regardless of the number of individuals involved. Bond Form The McLaughlin Company

20. In conclusion…. • Communication • How Unions are Organized • What the Insureds Expect • Responding to the Unique Requirements of Unions The McLaughlin Company