FDIC – Lessons From Hurricane Katrina – Catastrophe Planning

Hunting for something else I tripped over this from the FDIC on disaster planning for bankers. Lessons Learned From Hurricane Katrina: Preparing Your Institution for a Catastrophic Event … [Read more...]

Your Website Must Be ADA Compliant

  There are law firms trolling bank and credit union websites. If they find that the site does not meet Americans With Disability Act (ADA) standards for the visually impaired, they send you a letter demanding you fix your site and pay them not to sue you. I got three calls on this last week from clients. All claimed they had not … [Read more...]

Go Ahead, Use the F-Word

The word is Fiduciary. There is a great deal of talk lately about fiduciaries.  Financial advisors are being asked to perform to a higher standard, that of a fiduciary. Meaning they are to act in their client's best interests, not their own. That is a standard I have held since I first started as an insurance consultant in 2000.  When … [Read more...]

Supervisory Insights From FDIC for Banks

The FDIC issued a special edition of "Supervisory Insights" recently providing guidance on community banks guidance on governance. Preventing D&O claims means your board and leadership are attuned to regulation and regulator's stance on running your bank. This is required reading for anyone looking to meet their fiduciary obligations as … [Read more...]

Your Bank Is Buying Another Bank…

I got a call today from the CFO of a client bank.  They are 80% of the way to buying a small bank.  Relatively speaking, the bank they are buying is very, very small. It's so small that, in all likelihood, the acquisition will have no impact on my client's fraud-bond or management liability insurance policies.  I told the CFO to give their … [Read more...]

Cruddy Proposals of Insurance

I am looking at a thirty-page proposal of insurance for a bank and I cannot figure out what the premium charges will be.  There is no summary, no comparison, no chart to help me figure out what is being charged. Agents, if you can not summarize the essence of your proposal on one page you have not presented your ideas well. … [Read more...]

Updated Bank Recommended Limits of Insurance

The most common issue bankers ask me about is limits of insurance. Does the bank buy enough insurance? Does the bank buy too much insurance? Do we have the right insurance? Several years ago, I put together a list of coverage and recommended limits of insurance for my bank clients.  I just completed version seven. Download the … [Read more...]

Everest Financial Rating Increased

Weiss Ratings has increased their rating for Everest, one of the premiere insurers for banks. The change is from a C to a C+. Under the Weiss rating system, I see a C as a solid insurer. Other rating services give out so many ratings of A that the grade is almost meaningless. (One service rates 90% of insurers as A- or better. How is that … [Read more...]

Banks In Trouble Find It Hard to Get Sound Insurance

A bank client shared some info that the FDIC is looking to warn banks that there are exclusions in some bank directors' and officers' insurance for regulatory issues. My experience is that these exclusions are almost always only on banks with regulatory issues. In general, insurers are not looking to sell insurance when the chances of a claim are … [Read more...]

Summary of Bank Civil Money Penalty Issue As Of Now

I just sent the following to a bank client. We had completed a coverage review and thought that the issue of Civil Money Penalties should be in a separate email - making it easier to forward on to his board. John Smith, In our conversation yesterday I recommended that the bank consider removing civil money penalties insurance from the directors' … [Read more...]