New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter III - Policy and Certificate Provisions
Subchapter B - Property and Casualty Insurance
Part 72 - Indemnification Of Directors And Officers
Section 72.1 - Applicability
Current through Register Vol. 46, No. 12, March 20, 2024
(a) Section 727(a)(3) of the Business Corporation Law (B.C.L.), section 727(a)(3) of the Not- for-Profit Corporation Law (N-PCL) and section 7024(a)(3) of the Banking Law (B.L.) give a corporation the power to obtain insurance for the purpose of indemnifying its directors and officers in instances in which they may not otherwise be indemnified by the corporation under the provisions of B.C.L. article 7, N-PCL article 7 and B.L. title 7, provided that the contract of insurance indemnifying such corporate directors and officers, or "D&O indemnification policy." includes a retention amount (or deductible) and coinsurance, in a manner acceptable to the Superintendent of Insurance.
(b) No retention amount or coinsurance is required where:
(c) Retention amounts and coinsurance are both required, in accordance with this Part, for D&O indemnification policies issued to corporations formed under the Insurance Law, Religious Corporations Law, Cooperative Corporations Law, Transportation Corporations Law, or any other law of this State, where provisions of such laws make such corporations subject to B.C.L. section 727 or N-PCL section 727.
(d) A D&O indemnification policy issued to a foreign corporation, if exempt under B.C.L. section 1320 or N-PCL section 1321, need not provide for a retention amount or coinsurance.
