Officers and some 14 directors of embattled subprime mortgage lender Countrywide Financial must face the music in a shareholders lawsuit. That was the recent decision of a federal judge in Los Angeles in a case against Countrywide filed by shareholders including several large public pension funds. Countrywide's...
Byline: Kim Marrkand With more than 150 different directors and officers coverage forms in the marketplace and increased scrutiny by the U.S. Securities and Exchange Commission, it is now more important than ever to ensure that any policy adequate Byline: Kim Marrkand ...
This paper brings together a number of recent developments in the Directors' And Officers' (D&O) insurance landscape. Recent significant decisions by Australian courts and pronouncements by Australian policy makers mean that it is critical for directors and officers, as well as those who indemnify them, to be up to date...
Experts say coverage for noncompliance with Sarbox or other regulatory mandates may fall within the catchall indemnity provided by standard D&O insurance products. Some carriers have begun adding "Defense allocation" provisions into D&O policies. Those provisions allow an insurance company to pay only a portion of legal defense costs when...
After years of nightmarish increases, the price of Directors and Officers (D&O) insurance softened in the third quarter of 2004 and continued to drift down through the fourth quarter. Premiums stabilized this year and may head up again in 2006. But in the meantime, CFOs have an opportunity to field...
CFOs hoping for a continuation of the current dip in directors and officers (D&O) insurance premiums have been keeping their fingers crossed that the tighter regulatory environment of the past years might make accounting fraud less attractive to potential wrongdoers, thereby bringing the number of securities lawsuits tumbling down. The...
Byline: DAVE LENCKUS Risk managers should continue to count on a softening directors and officers liability market despite Tyco International Ltd.'s multibillion-dollar settlement of class action claims against the company and former officials, ac Byline: DAVE LENCKUS Risk managers should...
The paper describes results of D&O underwriters as of March 2005 and the growth in the severity of D&O claims and settlements. The passage of the Sarbanes- Oxley Act of 2002 and particularly Section 404 of that Act which offers D&O underwriters an opportunity to understand more thoroughly the risk...
Byline: JOHN T. SLANIA In the old days, life seemed somehow simpler for corporate directors and officers. "Occasionally a director would even nod off during a board meeting,'' says Warren Batts, an adjunct professor at the University of Ch Byline:...
The large number of high severity D&O losses of the past few years has affected the D&O market place creating a serious capacity crunch. The pricing of this line of business has increased dramatically while restricting coverage. This paper presents an objective methodology based on financial market theory to quantify...
In most any other industry, the increased demand for a product would likely boost prices. In the insurance business, particularly in the D&O line, insureds' search for airtight protection could heat up competition - and keep prices down - in an already competitive market. Indeed, the WorldCom and Enron settlements...
Directors and Officers (D&O) liability premiums decreased in late 2003 and early 2004 for the first time since 1999, but claim frequency and severity continued to increase. This illogical turn in the cycle is being attributed to new D&O market entrants. This article outlines the results of the Tillinghast 2004...
The Tillinghast 2004 Directors and Officers (D&O) Liability Survey is the 27th in a series of studies on D&O liability claims and insurance purchasing patterns. The primary objectives of the survey were: to help organizations improve awareness of potential sources of claims against their D&O and provide information to organizations...
In today's corporate and regulatory environment, companies - and their boards of directors - are paying close attention to directors and officers (D&O) liability insurance. But when it comes time to file a claim, many companies fail to take the necessary steps to ensure their claims will be handled smoothly...
The Directors and Officers (D&O) liability insurance market is in transition, which is both good news and bad news for businesses. The good news is that premium increases have leveled off this year. Some companies have been able to purchase broader coverage with less-restrictive terms than those they've had to...
After weathering a typhoon of price increases over the past few years, the commercial insurance market may be headed for calmer waters. This paper outlines a survey by Risk and Insurance Management Society Inc. RIMS and Advisen Ltd, as per which the premiums for property insurance fell 8.8 percent in...
Byline: RUPAL PAREKH NEW YORK-Regulatory scrutiny over stock-option practices will trigger more intense questioning from directors and officers liability insurers at renewals, market sources say. Several high-profile companies, including managed Byline: RUPAL PAREKH NEW YORK-Regulatory scrutiny over stock-option...
After Enron's collapse, many businesses and across the country have been taking a closer look at their governance practices and insurance to protect their directors and officers. New regulations by the U.S. Securities and Exchange Commission, stoc After Enron's collapse, many businesses and...
Like their counterparts in the for-profit world, directors and officers of non-profit corporations are also vulnerable to lawsuits arising from their activities as directors and officers. Non-profit directors and officers, contrary to popular belief, do not enjoy any general statutory immunity. The purpose of this paper is to equip directors...
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