The stock options timing scandal could present new risks for directors and officers insurance writers, according to industry experts.
Options timing involves the practice of granting so-called "in the money" stock options to executives as compensation, without putting them at risk of having them turn out to be worthless. The Securities and Exchange Commission and other federal and state prosecutors are investigating the activity.
Their inquiries commenced in March after The Wall Street Journal reported executives were receiving option grants at times when share prices hit lows leading to suspicions the options were backdated to ensure the executive was able to make money by executing them.
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