Post by xyz3600 on Feb 24, 2024 22:28:47 GMT -8
The second column , in turn, dealt with the areas of convergence and divergence existing between the business judgment rule and the insurance contract in question, formulating a conclusion to the effect that, despite the protection afforded by that institute, The insurance contract remains extremely relevant, especially considering the severity that increasingly characterizes the administrators' liability regime in Brazilian law. Having understood the two points above, it is believed that for this third and final column [ 1 ] it is important to explain, structurally, how the coverage commonly offered by the D&O insurance contract is presented and then observe the coverage intended to reimburse expenses held by the company (borrower) to pay for the defense of its executives, focusing, at the same time, on indemnity contracts.
Basically, this insurance contract offers two main coverages, namely (i) the cost of defense and (ii) compensation. There is, in addition, a series of other coverages that even motivate comments from the doctrine in the sense that this insurance would be of a multi-risk nature instead of, as the Brazilian regulatory body states, a typical civil liability insurance. [ 2 ] I am referring, for example , to coverage for online seizure , unavailability of Middle East Mobile Number List goods, emergency crises, damage to the image of society (the borrower), advertising and marketing costs , among others. The two coverages mentioned — defense cost and indemnity — are presented through three faces or sides, called A, B and C, making up the entirety of a proposed geometric figure. Coverage A refers to the insurer's funding, directly to administrators, of whatever is necessary for their defense/indemnification.
In English, this coverage is known as the director's and officer's liability insurance 'portion' ; coverage B is intended to reimburse the company, by the insurer, for the funds committed to the defense/indemnity of its executives. This is called corporate reimbursement and coverage C, in turn, provides coverage for the policyholder herself who, in this way, also becomes insured. In English, this is entity coverage. Regarding coverage C, most Brazilian policies only guarantee damages whose claims are related to securities. Abroad, namely in Spain and Germany, this coverage goes further and, for example, offers the policyholder a guarantee against undue labor practices. In the United States of America, C coverage in policies aimed at closely held companies is very broad. [ 3 ] The three faces or sides of this imaginary geometric figure structure the D&O insurance contract as a whole, but it is worth keeping in mind that, in truth, the coverage that really matters to administrators is A, the payment for which will be made directly by the insurance company.
Basically, this insurance contract offers two main coverages, namely (i) the cost of defense and (ii) compensation. There is, in addition, a series of other coverages that even motivate comments from the doctrine in the sense that this insurance would be of a multi-risk nature instead of, as the Brazilian regulatory body states, a typical civil liability insurance. [ 2 ] I am referring, for example , to coverage for online seizure , unavailability of Middle East Mobile Number List goods, emergency crises, damage to the image of society (the borrower), advertising and marketing costs , among others. The two coverages mentioned — defense cost and indemnity — are presented through three faces or sides, called A, B and C, making up the entirety of a proposed geometric figure. Coverage A refers to the insurer's funding, directly to administrators, of whatever is necessary for their defense/indemnification.
In English, this coverage is known as the director's and officer's liability insurance 'portion' ; coverage B is intended to reimburse the company, by the insurer, for the funds committed to the defense/indemnity of its executives. This is called corporate reimbursement and coverage C, in turn, provides coverage for the policyholder herself who, in this way, also becomes insured. In English, this is entity coverage. Regarding coverage C, most Brazilian policies only guarantee damages whose claims are related to securities. Abroad, namely in Spain and Germany, this coverage goes further and, for example, offers the policyholder a guarantee against undue labor practices. In the United States of America, C coverage in policies aimed at closely held companies is very broad. [ 3 ] The three faces or sides of this imaginary geometric figure structure the D&O insurance contract as a whole, but it is worth keeping in mind that, in truth, the coverage that really matters to administrators is A, the payment for which will be made directly by the insurance company.