A verdict awarded to the defendant in a court case, based on the plaintiff’s failure to prove his or her case.
Insurance Encyclopedia
Directive
A formal instruction issued by the E.E.C. to its member-states requiring each state to align its law in the matters indicated in the schedule.
Directive society
a friendly society which is subject to the provisions of the EC Insurance Directives, as implemented in UK law.
Directives 2002/12/EC and 2002/13/EC (Solvency I)
Amend Directive 73/239/ EEC (life undertakings) and 79/267/EEC (non-life undertakings) to strengthen solvency margin requirements. The new requirements (not applicable to mutuals, life or non-life, with less than €5 million annual contribution income): (a) allow Member States to establish more stringent solvency requirements; (b) increase the minimum guarantee fund, (to €3 million index-linked; (c) increase the threshold levels of premiums and claims below which a higher solvency margin is required; (d) allow earlier supervisory intervention; (e) increase the solvency margin for certain volatile categories of non-life business (marine, aviation and general liability) by 50 per cent; (f) allow a life company to include up to 50 per cent of its future profits for solvency until 31 December 2009 subject to supervisory approval; (g) the division of assets, for solvency purposes, into three categories those acceptable without limitation, those acceptable subject to limitations and those acceptable only with approval. The new measures start in 2004.
Directly Controllable by Management Risks
are those including risks normally associated with commercial management such as staff selection and control.
Director of Insurance
See: Commissioner of Insurance .
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A term used for the leader of the department of insurance in some states.
Directors
Companies Act 1985, s.741 states that director includes any person occupying the position of director by whatever name called’. A director is therefore anyone who ‘directs’ (identified by function rather than title). De jure directors are formally appointed and registered. De facto directors (constructive) are never formally appointed but act openly. Shadow directors do not act openly, they ‘lurk in the dark behind those who do’, being persons ‘in accordance with whose directions and instructions the directors of the company are accustomed to act’ (s.741(2)). Both executive and non-executive (i.e. outsiders) have the same general legal duties. The Higgs Report (2003) on corporate governance has introduced the concept of independent director, i.e. a non-executive director determined by the board as being independent in character and judgement and there are no circumstances (e.g. former employee) which could affect, or appear to affect, the director’s judgement. The Code on Corporate Governance also calls for the appointment of a senior independent director to liaise between the board and major shareholders.
Directors and officers liability
Type of insurance that covers directors and officers of a company for negligent acts or omissions or misleading statements that may result in a libel suit against the company.
Directors and officers liability insurance (D&
O)A form of errors and omissions insurance covering the directors and officers of corporations against suits alleging they committed wrongful act(s).
DIRECTORS AND OFFICERS LIABILITY INSURANCE (D&O)
Directors and officers liability is purchased by both for-profit and not-for-profit entities. It is designed to protect the personal assets of the firm’s directors and officers for negligent acts performed while employed by or serving on the corporate board. It is generally divided into the following parts:
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Insurance designed to protect Directors and officers from liability claims arising out of alleged errors in judgment, breaches of duty, and other wrongful acts related to their organizational activities.