Directors And Officers Liability Insurance System

Directors and Officers Liability Insurance refers to a system by which the directors and officers (including directors, supervisors, managers, etc.) transfer the risk of taking the responsibility of compensation for the company's or others' (including shareholders, creditors, etc.) economic damages they made in work by fault to insurance companies. The insurance companies take the responsibility according to the insurance contract.In the marketing economy, the directors and officers are facing increasing risks, duties and responsibilities. In order to encourage excellent managers to do business bravely and get more benefits for the shareholders, the western countries mostly use laws to expand Directors and Officers Liability Insurance, to scatter their responsibilities.The first Directors and Officers Liability Insurance in China was released by PICC and Chubb Group of Insurance Company on January 23, 2002. Comparing with other countries and districts, our country is behind in the area of Directors and Officers Liability Insurance. The research on the theory is quite thin. Now, the economic research has begun, but legal research is quite rare. The lacking of the research on basic theory of Directors and Officers Liability Insurance will affect the stable development of it Studying the basic theory from legal area is a meaningful work.The article introduces and studies the basic theory of Directors and Officers Liability Insurance.The article firstly introduces the concept of Directors and Officers Liability Insurance, legal characteristics of the kinds, general situation in other countries, and the meaning of developing it Then it analyses it from seven aspects, including the objects of Directors and Officers Liability Insurance, the parties of Directors and Officers Liability Insurance Contract relevant party, the payment of premium, therange of responsibility, the period of insurance, the duty of notifying of the insured and assured.The article uses many kinds of ways to structure the Directors and Officers Liability Insurance in China, and expects to promote the development of Directors and Officers Liability Insurance.