Regulators’ New Focus On Director And Officer Liability Insurance; Other Considerations


The Federal Deposit Insurance Corporation (the “FDIC”) issued an advisory statement on October 10, 2013, titled “Director and Officer Liability Insurance – Policies, Exclusions, and Indemnification for Civil Money Penalties.”

The advisory statement recommends that directors be well-informed about Directors & Officers (“D&O”) insurance and also be mindful of whether the policy contains “regulatory exclusions.” Although this is good advice in general, it is also self-serving for the FDIC. If an institution is closed by the FDIC, the existence of a regulatory exclusion cuts off one source of recovery for the FDIC and thus limits the ability of the FDIC to recover funds from the bank’s directors and officers post-resolution.

Originally Published in Missouri Independent Bankers Association Director's Supplement - February 2014.

Please see full Article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Topics:  D&O Insurance, Directors, FDIC, Indemnification, Officers, Professional Liability

Published In: Business Organization Updates, General Business Updates, Finance & Banking Updates, Insurance Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Polsinelli | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »