Two New MBIS Products Provide Additional Protection for Banks
Civil Money Penalties
MBIS, a subsidiary of the Wisconsin Bankers Association and Minnesota Bankers Association, is pleased to announce a new insurance product designed to protect your bank’s leadership. The new Civil Money Penalties (CMP) protection for directors and officers provides coverage for civil money penalties that are assessed against individual directors and officers by a federal regulatory agency for wrongful acts. In today’s litigation-heavy environment, such coverage is essential for attracting and retaining talented individuals at the top of your institution.
The CMP was developed to address the coverage gap created when the FDIC mandated that coverage could no longer be endorsed to a financial institution’s Directors & Officers (D&O) Policy. This separate, stand-alone insurance policy is purchased directly by the directors and officers of your institution. The bank does not pay for the coverage, nor is it an insured party under the contract.
The coverage is underwritten by AmTrust International Underwriters, a company committed to providing quality products for financial institutions. The policy insures the “Institution-affiliated Party” (individual directors and officers purchasing the product) against CMPs leveled against them by a federal banking regulatory agency. While normally available on an annual basis, coverage may be written to expire at the same time as your existing D&O Policy in order to align the expiration dates. The product is a “primary” policy, written on an Excess and Surplus basis, and it only provides coverage for fines and penalties; most D&O Policies will cover the associated defense expenses.
Excess Bond Deposit
In addition to the CMP Protection product, MBIS now also offers stand-alone Excess Deposit Bond coverage above FDIC limits. Previously, this coverage could only be purchased with supporting business, such as a Directors & Officers policy or FI Bond coverage. This single-policy solution protects your depositors in excess of FDIC limits, helping your institution to attract and retain larger deposits while providing peace of mind to your key accounts and customers. This coverage can be provided for all account and depositor types and puts the depositor in complete control of their excess deposit coverage.