Research On Liability Insurance Of Directors And Officers

Directors liability insurance is to point to by the company or companies and directors topay insurance premium, for the insured’s directors during their performance of duties,due to the misconduct (including pure negligence, error, misleading statements, breachof duty of care, etc.) damage caused to a third person and thus shall bear civil liability topay compensation, the insurer shall bear civil liability to pay compensation and pay forit on behalf of the liability defense spending by a kind of insurance on legal fees. Broadof directors liability insurance is in addition to the above content, also includes theinsurer is responsible for compensation by insurance companies according to law orcontract payment of compensation to the relevant directors. The compensation costrefers to the individual directors duty behavior shall bear civil liability to paycompensation by the company to pay the compensation.Directors liability insurance originated in Britain in the1930s, initially was developedrapidly in the United States, it has a history of more than80years. Today, directorliability insurance system in common law countries (typical representative for theUnited States, Britain) development has quite mature. In practice the vast majority oflisted companies in the United States are for the company’s directors to purchaseliability insurance for directors. Directors liability insurance was introduced into ourcountry in2002, it has been eleven years, at present, the company for the proportion ofdirectors liability insurance particularly low. So big contrast both at home and abroad,the reason is that; directors liability insurance system in China’s legislativeshortcomings, and defect of directors liability insurance the content of the contractterms. So to perfect relevant legislation, perfect the directors liability insurance contract,for the promotion of director liability insurance system in our country is of greatsignificance.This article through the comparative analysis, empirical analysis and inductive analysismethod, the study of director liability insurance system, the improving Suggestions fordirectors liability insurance contract. Article is divided into three parts, the first partoverview of directors liability insurance system, this paper mainly introduces thedefinition and characters of directors liability insurance and the legal characteristics andthe classification of different directors liability insurance, directors liability insurancesystem in our country there are introduced the necessity and feasibility; The second part discusses the directors liability insurance system in our country’s current legislativestatus quo and the status quo of the practice, analyzes the existing problems at present inour country this system; Part iii aiming at the problems in our country this systemperfect Suggestions, mainly including directors liability insurance should choose whatkind of pattern, main body, the main body of directors liability insurance contract, therights and obligations of the contract except the responsibility scope and responsibility,contract performance of the problems puts forward improvement Suggestions.