Benefits Payable Exclusion — a standard exclusion in fiduciary liability policies precluding coverage for
claims involving payment of benefits owed to a claimant, if monies are
available within the plan to make such a payment. For example, assume that as a
result of a lawsuit or settlement, a claimant is entitled to specific amounts
of money held within an insured's pension plan. If such monies can be paid
from the plan, it is not the intent of a fiduciary policy to make such payment,
because this would have the effect of covering a business risk. On the other
hand, if a claimant were to assert a valid claim against a now-defunct or
insolvent plan (from which no, or only limited, funds were available), this
exclusion would not preclude payment in such circumstances.