FDIC Asks Directors And Officers: Are You Insured?
November 25, 2013, 6:12 PM EST
Law360, New York (November 25, 2013, 6:12 PM EST) -- Recently, the Federal Deposit Insurance Corporation advised regulated financial institutions to be wary of “an increase in exclusionary terms or provisions” in insurance policies covering directors and officers liability. While this advice was directed to financial institutions regulated by the FDIC, much of it is good advice to follow for all corporations and their boards of directors. This article summarizes and expands on the FDIC’s advice to directors and officers.
The FDIC’s unusual advisory came in the form of a financial institution letter. In the letter,...