Some Directors and Officers (D&O)liability Policies Include an Insuring Agreement

question 11

Multiple Choice

Some directors and officers (D&O) liability policies include an insuring agreement that covers the legal liability of a corporation arising out of the wrongful acts of directors and officers.This coverage for the corporation is called

• A)blanket coverage.
• B)corporate reimbursement coverage.
• C)personal liability of directors and officers coverage.
• D)entity coverage.

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Definitions:

Total Revenue

The total amount of money generated by a company from its business activities, before any expenses are subtracted.

Fixed Costs

Expenses that do not change with the level of production or sales in the short term, such as rent, salaries, and insurance.

Variable Costs

Costs that vary directly with the level of production or sales, such as materials and labor.

Corporate Tax Rate

The percentage of a corporation's profits that is paid to the government as tax.