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

question 28

Multiple Choice

Some directors and officers (D&O) liability policies include an insuring agreement tcovers 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.

---

Definitions:

Markup Percentage

The percentage added to the cost of goods to cover overhead and profit, calculated as markup divided by the cost of the goods.

Selling Price

The amount of money for which a product is sold to the customer; it may include costs such as manufacturing, distribution, and markup.

Traceable Fixed Expense

Fixed costs that can be directly linked to a specific product, department, or segment and would disappear if the product, department, or segment were eliminated.

Net Operating Income

The total income generated from normal business operations after deducting operating expenses but before taxes and interest.