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Are your directors and officers protected in the event a regulatory investigation results in civil money penalties?

FGIB:Offering Insurance for Civil Money Penalties for Directors & Officers

A financial institution’s Directors & Officers (D&O) insurance policy cannot provide coverage to individuals for civil money penalties imposed for alleged wrongdoing. The FDIC coupled with increased regulatory scrutiny has made it explicitly clear that a bank can’t insure or indemnify any civil money penalties on its D&O policy, leaving every bank director and officer exposed. To respond to this exposure, which can significantly impact the assets of an individual director or officer, Financial Guaranty Insurance Brokers (FGIB) has partnered with an insurance carrier to provide a new separate insurance policy, Civil Money Penalties Personal Protection (CMP) Coverage.

Civil Money Penalties coverage will pay up to $250,000 per director or officer should they be assessed a penalty personally as a result of a regulatory investigation.

Peace of Mind: How the Policy Works

CMP Coverage is a standalone policy purchased and paid for by the director or officer wishing to get insurance to cover his or her personal liability, not the bank. Civil money penalties means monetary penalties or fines imposed by a regulatory agency against the institution-affiliated party. The CMP policy covers only the penalty and does not include defense costs coverage. You can choose a zero, $500 or $1,000 deductible with limits of $100,000 or $250,000.

Civil Money Penalties Pricing Matrix

Individual Deductible Amount	Annual Premium For $100,000 Limit Policy	Annual Premium For $250,000 Limit Policy
$0	$750	$1,500
$500	$650	$1,300
$1,000	$500	$1,000

*Coverage is subject to underwriting and Surplus Lines Tax & Stamping fee will apply to annual premium(s).

Get Started

Download a description of the CMP policy here.
Download the application for CMP coverage here.

WHAT OUR CLIENTS ARE SAYING

“I have had a long time relationship with FGIB. Throughout the years they have been straightforward and attentive to our organization’s needs. They have always been available to answer questions and give presentations to both executive management team as well as the BOD. Everyone is friendly with a vast amount of bank insurance knowledge.”

Chuck Lanzrath, CFO

Layton State Bank

“Words cannot express my sincere thanks to FGIB. In 2009 our bank was put into a regulatory C & D. Our Fidelity and D & O Bond was cancelled, without notice, from a company that the bank had been with for over 20 years. The cancellation shocked us, since we had an additional 17 months until the Bond’s expiration date.

It was an extremely difficult time for our bank. Fortunately, we were put in contact with FGIB. FGIB was able to find reasonable coverage for our Fidelity and D & O Bond, when no one else would. We have been a customer ever since. We appreciate FGIB’s honest, personal, and professional service.”

John G. Sorensen, Jr., President

Home Savings Bank

Providing Solutions that Align with Your Business Needs

Our vast network of contacts, through industry organizations, long-established relationships and years of service to the financial industry and beyond, enables FGIB to sort through the complexity of choices to recognize the right fit for your organization. We know your industry and understand how to secure the appropriate insurance solutions. We are licensed in the majority of states and are ready to serve you. Give us a call at 626.793.3330.