Chubb Insurance Pulls Back From Insuring Banks

I have heard now from two sources that Chubb Insurance is pulling back from providing community banks with management liability, directors and officers, financial institution bond, and related insurance coverages. The reports are that the insurer is not canceling policies but pricing renewals so to be uncompetitive. Also, no new banks are being … [Read more...]

Insurer Wants Square Peg For A Round Hole – Bank Loss of Income Insurance

A property insurer asked the bank's insurance agent to have the bank complete a loss of income worksheet. He reached out to me for help....   Matt,  Nice to hear from you. There is no way to fill out the "standard" business income worksheet for a bank. A bank's finances just dont match up with such a form. It's why I rail against … [Read more...]

Bank Civil Money Penalties Insurance & The FDIC

Bankers got a note a month ago from the FDIC telling them that civil money penalties insurance on a bank directors' and officers' insurance policy was a no-no. CMP is a topic I have written about a fair amount. Today I had a conversation with several bankers and an association executive on the issue. I thought a video might be … [Read more...]

Bank Directors and Officers Insurance Handbook Available on Amazon

My latest update to my Bank D&O Insurance Guide is out... The Definitive, Pragmatic, Unbiased Insurance Guide For Bank Board of Directors on The Directors’ and Officers’ Insurance Policy. Written for bank officers and directors who need to know more about how their directors' and officers' insurance works. A practical guide to what bankers … [Read more...]

The Bank Insurance Route-Map

As a kid my dad would take me into Boston.  We always rode the subway.  Everyone in New England knows the Boston subway as "The T." Here's a map of The T - similar to what is posted in every subway station in "The Hub." We rode the Blue-Line when I was in elementary school.  I went to college off of the Green-Line.  I dated a girl who lived … [Read more...]

Banks Selling Insurance – Helping Customers

For the past 15 years banks have been trying to figure out how to sell insurance. The idea is to increase fee income and leverage the relationships - "synergy" is the word that gets thrown about. Sometimes it works OK - other times, well, not so good. At the same time, insurance agents have done an abysmal job of selling two types of … [Read more...]

FDIC Director Suits: Lessons Learned

I recently finished David Baris and Jared Kelly's book, FDIC Director Suits: Lessons Learned. Here is the review I wrote in Amazon: "Baris and Kelly put together a quite readable overview of what the federal regulators consider as they go after bank directors. Each case is spelled out in just enough detail to highlight the mistakes the banks … [Read more...]

Bank Extra Expense Insurance

Extra expense insurance pays your increased costs of operation with the purpose of getting you back into business quickly. EE pays for renting temporary quarters, advertising to get customers back, costs of wiring, and setting up your temporary quarters, costs of expedited shipping, etc. Extra expense insurance is a part of … [Read more...]

Bank-Owned Property Exposures – REO

The insurer Zurich just released a "white-paper" on the topic of the liabilities faced by banks on Real Estate Owned properties (REO). Sorry Zurich but your piece is short on real help for banks.  Seems more like a marketing piece than a white paper. Here's some actual help for banks. There are three main exposures banks face in … [Read more...]

Chubb Better With Dishonest Employees

I've complained often about the financial institution bond exclusion for "dishonest employees."Here is the clause on a Chubb policy I am currently reviewing for a bank client:This Bond terminates as to any Employee: F. immediately on the ASSURED, or any of its directors, trustees or officers not acting in collusion with such Employee, learning of … [Read more...]