Smithsonian Chief Intervened on Insurance Policy

Despite previous statements to the contrary, Smithsonian officials acknowledged that the institution’s former chief executive had asked questions about the institution’s insurance policies with Chubb Group while he served as a paid member of Chubb’s board of directors, reports The Washington Post.

The topic is likely to be aired today at a hearing of the Senate Rules Committee, which has asked the leader of an independent review committee to testify.

The review committee last week released a report highly critical of the close ties the Smithsonian officials — including Lawrence Small, who resigned as the organization’s chief executive in March — had to its insurance company.

In 1999, Lawrence Small asked about a Chubb insurance policy that covered liability for directors and officers, Smithsonian spokeswoman Linda St. Thomas confirmed to the newspaper. As a result, the Smithsonian switched its policy, though it remained insured by Chubb.

“We got a better deal financially,” said Ms. St. Thomas. “We paid no higher premium and they amended the Chubb basic policy.”

Since 2000, Mr. Small has received $4.8-million from Chubb, on whose board he has served since 1989; the Smithsonian’s second-in-command, Sheila P. Burke, also serves on Chubb’s board, and has received $2.9-million from the company since 2000, according to the Post.

She will resign in September, though some legislators have called for her immediate resignation.

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