Study On The Underwriting Coverage Of D&O Insurance

With the development of modern enterprise management systems,shareholder centralism has gradually changed to board centralism,and the company's directors and senior staff have become increasingly powerful.Along with this development,laws and regulations have magnified and tightened the management responsibilities of directors and senior staff.Due to the increasingly heavy liability risks faced by directors and senior staff in the execution of their duties,this may result in the departure of directors and senior staff,and it is also not conducive to the enthusiasm of management personnel for bold and innovative business operations.Against this background,the liability insurance system of directors has emerged and developed into one of the most important ways for British and American companies to diversify the risks of directors and senior staff.Compared to the more mature UK and US directorial liability insurance market,China's directorial liability insurance system started late.It was not until a Chinese insurance company issued China's first director's liability insurance contract in 2002.However,it did not bloom the related market.In addition,the laws and regulations of our country stipulate the responsibility system for directors and senior staff of enterprises,and the responsibility system has not yet been established.This is also one of the important factors that lead to the inadequate development of directors' liability insurance system.However,with the development of China's securities market and the awareness of protecting the public's rights,the liability risks faced by directors and senior staff of listed companies are gradually increasing.Moreover,under the reform and opening policy and economic globalization,China's enterprises have increasingly expanded into overseas markets and even offshore financing,and the relatively strict foreign directors' liability system also poses challenges to theprotection of the self-interest of directors in China.Therefore,China needs to establish a relatively complete system of directors' liability insurance.This article draws lessons from the legal provisions of the Anglo-American law countries and studies the scope of insurance liability of the insurer in the liability insurance of directors.In addition,because the system is still under development and the insurance contracts in practice are diversified,the terms of the insurance contract based on the research coverage of the coverage in this article are general terms,not the deterministic terms of the insurance contract.Due to words limit,this article has selected general underwriting clauses in the common director's liability insurance contract.Taking this clause as the starting point,the scope of the insurer's insurance liability is studied.The main body includes four parts: The first part is the analysis of the concept of liability insurance for directors,which mainly includes the purpose,nature and function of the relevant system.This part has a directional and principled guiding role in the research on the underwriting scope of insurers.The second part to the fourth part of the study on the insurer's coverage of the specific,under the guidance of the first part of the concept,respectively,from the insured subject scope,underwriters underwriting conditions,the scope of insurer coverage and liability exclusion liability angle.In the course of the study,the important concepts "claims" and "improper behavior" involved in the liability insurance contract of directors were in-depth discussions with existing foreign jurisprudence.The conclusion part summarizes the above,and generally presents the insurer coverage of the general director liability insurance contract.According to the conclusion,the insurer's coverage should be determined in accordance with the comprehensive legal provisions and the insurance contract agreement.The interpretation and application of the insurance contract clause should comply with the mandatory provisions of the law and the concept and purpose of the director's liability insurance system.