Wrongful Act
Error, misstatement, or breach of duty by an officer or director of a company that results in a lawsuit against the company. directors and officers liability insurance covers claims arising from wrongful acts by directors or officers of a company while in that capacity. Wrongful acts specifically exclude dishonesty, theft, libel, and slander. During the liability insurance crisis of the 1980s, this type of coverage became unavailable in many industries as wrongful acts received an increasingly liberal interpretation by the courts and many expensive lawsuits were filed against business firms.
Popular Insurance Terms
Combination of an interest rate cap and an interest rate floor, creating a band within which interest rates can range. For example, if an interest rate band is between 6% and 10%, the ...
Retirement plan under which a discrete increment of periodic retirement income is credited to an employee for each year of service with an employer. This increment is either a flat dollar ...
Individual licensed to sell securities to the public. For example, to sell variable annuities and variable life insurance products and mutual funds, an insurance agent is required to pass ...
Coverage for all personal property, regardless of location of an insured and household residents, including children away at school. Written on an all risks basis, subject to excluded ...
Extended reporting period, for an unlimited length of time, during which claims may be made after a claims made basis liability coverage policy has expired. ...
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Retirement vehicle permitted under section 403 (b) plan of the U.S. Internal Revenue Code for employees of a public school system or a qualified charitable organization. Under such an ...
Smallest number of individuals for which an insurance company will issue a policy. A minimum number is required because the fixed expenses of placing a policy on the books exist regardless ...
Legal decision in which the Supreme Court of the United States ruled that states cannot require employers to provide disabled employees the same health insurance with which they provide ...
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