A Secondary D&O Plan as Backup Insurance

 

Commercial market D&O insurance is the backbone of any community bank’s management liability insurance program, but if it is suddenly withdrawn or restricted, what’s your back-stop?

An industry-owned, captive insurance plan like the one offered by First Monetary ("FM") can provide a sound long term risk management solution. The FM wrap-around  program will step in to provide protection if primary protection is lost; it will also supplement and complement the coverage that private insurers may restrict or eliminate.

Reflect back to 1986, and consider the pressures that community bankers faced when commercial insurance was not available for many institutions. Consider the current regulatory issues facing community banks. Should the commercial insurance market again become unwilling -- or unable -- to insure your institution,  having available capacity from a program like First Monetary’s could prove invaluable.

 

Registration for First Monetary's 28th Annual Members Meeting -- 23-25 June 2013 --  has commenced.  Two Bermuda symbols, the graceful longtail bird and a Bermuda moongate are used to represent the event that is held each year in Bermuda. A Bermuda moongate is a coral-stone arch-shaped like full moon and symbolises unity, peace and happiness. Bermuda's longtail bird, is a symbol of beauty and freedom.

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First Monetary Mutual, Ltd. (“FM”) traces its twenty-five year roots to just this kind of crisis, and stands prepared to help again today. Membership is open to any qualifying institution in the states of New York and Pennsylvania, many of whom will attest to our proven track record and the value proposition of our relationship.  

FM shareholders gain secure access to a predictable, stable source of coverage that’s affordable, and ensures continuous protection if standard D&O coverage is suddenly cancelled or withdrawn. Beyond this important peace-of-mind, the program offers its members unique combination of risk management benefits, the cumulative after-tax value of which exceeds current $3,500 annual premium. Take a look at this list and judge for yourself. 

  1. A participatory MGIC PMI program with profit-sharing potential.
  1. On-line access to key industry monitoring publications.
  1. Full-service consultation support.
  1. 100% Asset reinvestment in member institutions.
  1. Partial reimbursement for Bermuda shareholders meeting attendance.

What’s more, membership in First Monetary puts the full power of E-Board.com, a powerful, secure, send-and-share document solution, at your fingertips. Pre-configured to provide simple, low-cost and easy, anywhere access to the management of your FM insurance plan, E-Board has built-in extensibility features that can extend the equivalent benefits a high-priced intranet to the rest of your organization.

With instability and uncertainty still very much a part of today’s operating mix, the importance of having and maintaining a ready-made alternative to the vagaries of the financial and regulatory environment has regained traction amongst growing numbers of community banking institutions. Shouldn’t yours be one of them? We’d welcome the opportunity to pursue that discussion with you.