Directors and officers liability insurance: Is the crisis over?
Article Abstract:
Rates for liability insurance coverage of corporate officers and directors are cyclical. In recent years, this coverage was most expensive in 1978 and was cheapest in 1980. Currently officers' and directors' insurance rates are rising again and are expected to peak in 1987, after which the rates will gradually come down. The rising prices for this type of coverage are attributable to the number of insurance companies that discontinued such policies in 1985 due to financial losses suffered by the insurers. Predictions of the future prices and coverage extensions or limitations related to officers' and directors' liability insurance are offered by insurance executives from James & Company of Georgia Inc, Chicago Underwriting Group, ARC Excess & Surplus Inc, and Chubb & Son Inc. Opinions as to coverage and rates are also offered by risk managers from different industries.
Publication Name: Cashflow Magazine
Subject: Business
ISSN: 0196-6227
Year: 1987
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Delaware statute: Will it be a relief to D & O insurers?
Article Abstract:
The growing number of lawsuits against corporate directors has made directors' and officers' liability insurance (D & O insurance) difficult to obtain at any price. The State of Delaware has attempted to alleviate this problem by passing legislation that limits the individual liability of corporate directors. The Delaware law does not provide liability limitations for six exceptions: breach of duty, actions in bad faith, intentional misconduct, knowing violation of law, transactions creating improper personal benefit, or violations of Section 174 of the Delaware General Corporation Law. D & O insurers incorporated in Delaware will still have significant exposure under the new law, since most suits against corporate directors allege one or more of these exceptions. The Delaware law may help reduce the cost of defending and resolving this type of litigation.
Publication Name: Cashflow Magazine
Subject: Business
ISSN: 0196-6227
Year: 1987
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Washington discovers health insurance
Article Abstract:
Health insurance legislation may replace tax reform as the most important issue before Congress. Some form of health insurance for catastrophic illnesses will probably be passed by the Congress. The impact of such a bill on employer-provided health insurance is not yet clear. There may be increasing pressure on employers to provide an option for catastrophic illness, but the costs of providing for catastrophic illnesses, now and in the future, are difficult to ascertain. Legislative alternatives introduced by Senator Edward Kennedy and Health and Human Services Secretary Otis Bowen are examined. The potential for Individual Medical Accounts (IMAs), which would be formed and taxed similarly to IRAs, is discussed.
Publication Name: Cashflow Magazine
Subject: Business
ISSN: 0196-6227
Year: 1987
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