USMX Animated PDFs

62 2 0 1 7 A N N U A L R E P O R T PURPOSE The Shipping Industry Mutual Assurance Association Limited (SIMAS) was created in 1981 by special act of the Legislature of Bermuda to provide insurance coverage to the maritime industry that was unavailable in the commercial marketplace. This Financial Injury Coverage indemnifies USMX and its carrier members for the legal costs incurred as a result of the implementation and enforcement of the USMX-ILA Master Contract or any other labor contract negotiated by USMX. The insurance covers court actions and adjudicatory proceedings before maritime or labor- related agencies, third-party claims against the insureds, arbitrations, strikes, and work stoppages. COVERAGES SIMAS also provides excess Directors' and Officers' (D&O) coverage to USMX's Directors and Officers. SIMAS is governed by a board of directors chosen from among USMX's Board of Directors and staff and is administered locally by Marsh Management Services (Bermuda) Limited. SIMAS's premiums are evaluated annually by its actuary and are funded through an assessment paid by USMX carrier members. In addition to the Financial Injury Coverage for USMX carrier members and the D&O coverage for USMX's Directors and Officers, SIMAS also provides excess Fiduciary Liability Coverage to the Management Trustees of the Management-ILA (MILA) Managed Health Care Trust Fund. The 2005 civil RICO action that is still pending in the United States District Court for the Eastern District of New York is the subject of a claim under this coverage. During 2017, USMX carrier members were able to avail themselves of coverage through SIMAS for the following legal matters: • Representation of a USMX carrier member before the National Labor Relations Board in connection with an unfair labor practice charge filed against the carrier by the ILA, and • Prosecution of a federal district court action in Baltimore to enforce an Arbitration Award against ILA Local 333. SHIPPING INDUSTRY MUTUAL ASSURANCE ASSOCIATION LIMITED (SIMAS)

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