NU Online News Service, Oct. 13, 3:40 p.m.EDT
|Passage of the Dodd-Frank Act will mean a lot of changes in theworld of finance, but having a current professional liabilitypolicy should grant executives some security in the case oflitigation, said one insurance expert.
|During a webinar sponsored by the Professional LiabilityUnderwriting Society, titled The Dodd-Frank Act: Underwriting,Claims and Risk Management Implications, Carol A.N. Zacharias,senior vice president, deputy general counsel, North America forACE Group, said despite all the uncertainties surroundingimplementation of the Dodd-Frank Act, a current professionalliability policy should provide adequate coverage.
|"I think the first thing one needs to do is look at what one hasin their existing directors and officer policy," noted Ms.Zacharias.
|A policy should provide coverage for civil actions,administrative and regulatory proceedings, criminal proceedings,and investigations by regulators, she noted. Under the Dodd-FrankAct, there could be increased scrutiny from regulators.
|In tandem with a D&O policy, there should be a currentemployer's practices liability policy in place as the law hasexpanded the role of whistleblowers. She explained that if someonehas been a whistleblower and is subsequently let go from their job,they can say it was a retaliatory act and sue.
|What is not known is whether the new law will lead to anincrease in proceedings and litigation from other areas ofgovernment or whistleblowers, she noted.
|"We are watching," she said, adding that a lot of regulationstill needs to be written.
|"Your policy should be alright if you've got a modern policy inplace that provides coverage for these types of proceedings," Ms.Zacharias said.
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