Bankers Professional Liability (BPL) Insurance
Categories: Insurance, Education, Ethics/Morals
Jerry is a victim of check fraud (not Czech fraud, which is an entirely different thing). The bank incorrectly honored a fraudulent check, which the fraudster cashed in Jerry's name. Jerry is mad. He decides to sue the bank for a breach of duty.
Thankfully for the bank, it carries Bankers Professional Liability (BLP) Insurance, which could protect against employee financial loss from Jerry's claim. It's basically a kind of errors and omissions insurance which protects the employee who cashed the fraudulent check, or even the bank itself from the terribly expensive process of mounting a legal defense or, worse, paying the judgment in the event of a successful lawsuit.
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Finance a la Shmoop! How does a board of directors function?
All right, well structurally, the Board of Directors has really one function, after
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recruits, then hires the CEO and that's not necessarily easy. Because, most
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from which they have to be bought away. Picking the right CEO, is the big
roulette wheel bet, the board makes. Is the CEO good, or bad, or ugly and yeah the
CEO can be all three. After being hired the CEO then hires everyone else, more or
less. In a public company, the board divides into committees, to advise and
oversee many of the little processes. There's audit committee people and
nomination and government committee people and Compensation Committee people.
In large companies there are also, often subcommittees, that focus on narrow
things, like technology, or politics and lobbying and, or the environment. You know, if [oil drill with man and duck]
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Walmart desk provider? That is, are we Pirates of the Caribbean, or are we La La
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board cover its primary obligations, in providing a fiduciary duty, to the
shareholders, who elected them? Is the board governing fairly and equitably?
Yeah, how do they do that? Well they just basically pay attention, right? Are
company policies racist, or gender biased, or ageist?
Which is illegal everywhere, except Silicon Valley in Hollywood. Are all the [director and actress]
right controls inspected, like audit, hiring, firing, policies and our
companies casual Fridays, have they gotten to just to casual? Is that a board item?
Yah, alright, next meeting. So yeah, that's the gist, hire the CEO, form
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