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failure to fund in accordance with ERISA exclusion

A standard exclusion in fiduciary liability policies that precludes coverage for claims alleging failure to fund in accordance with the guidelines prescribed by the Employee Retirement Income Security Act (ERISA). The rationale for the exclusion is that it is contrary to public policy to provide insurance coverage for intentional violations of federal law. However, most fiduciary liability policies do provide defense coverage when such allegations are made.

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