Determination Of Subject Of Legal Relationship And Balance Of Interest In Director Liability Insurance Contract

Actual operators such as directors,supervisors and senior managers of listed companies face a lot of risks in the capital market,and relevant laws and regulations,especially the revised Securities Law,set up relatively strict code of conduct for such subjects.Director liability insurance plays an important role in diversifying postholding risks of directors and senior officers and attracting excellent talents for companies.However,in order to avoid adverse selection,policy holders of Director liability insurance shall be strictly required to perform the obligation of disclosure in good faith.In the development of directors’ liability insurance,scholars also find that directors’ liability insurance plays an important role in perfecting corporate governance,and insurance companies’ involvement provides an external impetus for the perfection of corporate governance.The core of corporate governance lies in the distribution of responsibilities,which,in the end,embodies the office-holding risks of the company’s directors,supervisors and senior managers.Such directors,supervisors,senior managers and the company itself shall all be included in the category of the insured.Since the claim system is adopted for director liability insurance,the scope of the insured shall be further expanded according to the basic scope to include directors,supervisors and senior officers of the company who have established branches or subsidiaries or will establish new branches or subsidiaries.The company shall pay insurance premiums as the policy holder when purchasing director liability insurance.Along with the development of the social responsibility theory,the directors’ liability insurance bears deeper value pursuit,that is,the company fulfills its social responsibility by compensating the third party’s loss via the insurer’s compensation of insurance money to such third party.For a director’s liability insurance,a third party who has the right to claim compensation shall include the company and its shareholders,and protect the interests of such entities by granting them the right to directly claim for insurance benefits.Given the fact that director liability insurance plays an assessment role in determining the company’s proficiency,a listed company that purchases director liability insurance shall,on its own initiative,disclose the information on the insurance it has purchased so as to facilitate the assessment of the listed company and the prediction of transaction risks made by reasonable investors at the time of investment.