Study Of Directors And Officers Liability Insurance

The D&O liability insurance for our country is both familiar and unfamiliarterms. It is familiar because it has been introduced into China for more than a decade,and it is strange because until now, there are still a lot of people do not understandthem. With the continuous economic development in China,the social insurancesystem was introduced in the context of our country. On the one hand it can improvethe corporate governance structure, on the other hand it can help the company,shareholders and creditors to keep their benefits.Although it has developed for more than a decade, but the D&O liabilityinsurance in our country still has many shortcomings: inadequate legislation, theprovisions of the effectiveness of the existing low level, the lack of uniformregulations. However, with the concept of the rule of law in China’s socialistdeepening continuously push forward the legislative work of director liabilityinsurance to support a sound and comprehensive internal and external conditions aregradually met. Thus, with the advance of theoretical research, as well as deepeningthe practice of foreign experience digestive absorption of the D&O liability insurancewill be able to help the legal system to establish and improve.This essay adopted the method of comparative analysis. At first the director ofthe basic system of the D&O liability insurance are discussed, and then in-depthstudy of the director liability insurance system in the United States as well as thedevelopment of the D&O liability insurance crisis.The first chapter introduces the concept of liability insurance for directors, thenature and function, as well as U.S. D&O liability insurance. American D&O liability insurance system is the world’s best, which we have much to learn from. We can learnmuch from the American experience and the American D&O liability insurance crisis.We can look for a breakthrough of directors liability insurance system, and createsuitable foundation for its development and improve our directors liability insurance.The second chapter introduces the director liability insurance contract relatedsystems. It is about deep study of directors liability insurance contracts, includinginsurance contracts and related parties, the subject matter insured, contract terms andeffect.The third chapter introduces the development situation of our currentD&Oliability insurance system, barriers and improvement. Legislation exists inscattered legislative effectiveness level is low, not high recognition in practice as wellas our social and economic systems in some of the barriers are restricting directorsliability insurance. We want to improve the socio-economic system, improve the legalsystem and the design of more rational policies on three aspects of Directors’responsibility to perfect the legal system. This paper attempts to improve theseaspects of construction and economic environment to provide support for theestablishment of a director of a sound legal system of liability insurance.In summary, through a comprehensive discussion and analysis, the finalconclusion is: director liability insurance system has a very important value. If wewant to establish director liability insurance legal system in China, we need toconstantly improve the relevant system to play its due role in D&O liabilityinsurance.