Research On The Directors' And Officers' Liability Insurance System

The functions of insurance involve dispersing hazard and absorbing loss. Directors'and officers'liability theory which in the corporation law theory always associate with liability insurance which in the insurance law theory. The association just resolved the choice problems about directors'and officers'liability system. Enhancing the obligation and liability of the directors can make the directors work earnestly. However, over-weight personal liability may put the capable person out of the directorate. It will tamper the corporate handing efficiency in some extent. Therefore, when the directors of the corporation must bear the compensation liability because of damaging the third people benefits negligently, The Directors'and Officers'Liability Insurance(for short D&O Insurance) can perform it's functions that imputing the risk to the insurance company ,as a result ,the directors would not be short of deploitation and creativity because of over-weight liability.In the text the writer from the basic theory to start researching the D&O Insurance System. After analyzing the corpus and object of the legal relationship of the D&O Insurance, insured liability scope, the obligation to disclose of the cost burden, the inform liability of the policy-holder, the notice liability of the assured etc, and combining the lawmaking actuality of the D&O Insurance System in our country ,the writer put some lawmaking ideas about building and perfecting the D&O Insurance System in our country. The text is divided into sequentia three components totally.Chapter 1,"The summary of the D&O Insurance system".In this component the writer summarize the D&O Insurance system from two sides.