Delaware's Governor John Carney has signed a bill to allow prisoners to take out liability insurance for board members and officials on page A.
Page A provides coverage for claims against board members and officials whose costs are not costs. indemnified by the company, for example with the settlement of derivative claims.
Senate Act 203, which amends the State General Companies Act, was adopted unanimously by the legislature on January 27 and signed into law by Governor Carney on Monday. Its progress has been closely monitored by the D&O insurance sector.
The law enters into force immediately.
A spokeswoman for the Delaware Department of Insurance said in an email that she does not expect prisoners to benefit greatly from the legislation until
Priya Cherian Huskins, San Francisco-based partner and senior vice president of broker Woodruff Sawyer & Co., said it was previously unclear. according to state company law whether a company could finance a captive to provide Side A coverage.
Ms. Huskins said that while she does not expect the law to result in a hasty formation of prisoners, which requires significant capital investment, the public company provides a new option for coverage.