Settlement Programs — programs operated by various government agencies, such as the U.S. Internal
Revenue Service (IRS) and the U.S. Department of Labor (DOL), for the purpose
of resolving disputes without resorting to litigation. For example, employees
and employers can voluntarily agree to settle claims pertaining to employee
benefit programs, using settlement programs. Accordingly, fiduciary liability
insurance policies often contain specific policy provisions and separate,
additional limits that apply to the resolution of claims using settlement
programs. The purpose of this approach is to encourage resolution of claims
under such programs because it is likely to reduce total indemnity and defense
costs.