Liability product.

The new policy form, currently called COAXL (Commercial Accounts Excess Liability), will be effective from April 1, 1994.

This coverage is designed to appeal to "commercial'' or "middle market'' accounts which would like to purchase additional capacity.

Mr. Brian O'Hara, president and chief operating officer of XL Insurance Company, said: "This is a simplified version of our general liability product, that we have been selling since our inception.

"We have simplified it with the aim of trying to appeal to a broader audience, particularly in North America. In principle, we have been servicing Fortune 500 companies. This general liability product will appeal to the next 1,000 smaller companies.

"The simplification allows us to price the product lower than our normal policy,'' he said.

The COAXL policy, which is being offered only to accounts with revenues of up to $500 million, will have a maximum limit of $50 million.

Limits will be available in $5 million increments with a minimum limit of $10 million.

The minimum attachment point will be $25 million.

Mr. Robert J. Cooney, executive vice president and chief underwriting officer of XL Insurance Company said: "This level of commercial account business is being increasingly targeted by our principal brokers, and XL is responding by providing a product for this growing market segment.

"XL's very low operating expense ratio will enable us to be competitive in this area, and the increasing use of electronic information exchange will further streamline the application and underwriting process.'' XL Insurance Company is a wholly-owned subsidiary of EXEL Limited, which provides general liability, directors and officers, professional liability and property insurance coverage to industrial, commercial and other enterprises on a worldwide basis.