Insurer Refuses to Renew NRA Directors’ Errors and Omissions Insurance

Lloyd’s of London has refused to renew NRA director’s E & O policy, when it expires in two months. NRA has responded by creating a special (and inadequate) fund from members’ money to tide it over until it can find someone, somewhere, who is willing to issue coverage. That it was Lloyd’s to begin with tells you something, they specialize in issuing very high-risk policies, in exchange for high premiums. When they say “no way!” you know the risks are sky high. As Judge Journey says in the article,” if Lloyd’s won’t insure you, who the hell will?” The board will probably go into the annual meeting in September “riding bare back.” There is a certain justice here, of course.

E&O policies are coverage for directors screwing up and getting sued for breach of fiduciary duty and that sort of thing. Sued for millions or tens of millions, and soon without insurance protection. As might happen to a board which has spent tens of millions in legal fees, ratified an insane bankruptcy, ignored officers’ squandering of members’ money, hasn’t investigated its former treasurer even after he took the Fifth dozens of times when being questioned, and things like that. Directors should be reflecting … you might just lose your house and have to file for personal bankruptcy over your decisions.

3 thoughts on “Insurer Refuses to Renew NRA Directors’ Errors and Omissions Insurance

  1. “You might just lose your house.” Can your lawyer friends explain how individual NRA life members might go about suing NRA board members specifically over their gross mismanagement, as they continue to stand silent and do nothing that needs to be done to save the NRA?

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  2. Heads up: Bad ChiCom Tribune link.

    However, it’s all over the internet, announced by Lloyds in early May. Lloyds’ policy of dumping NRA began years ago. See for example,
    https://kqfinancialgroupblogs.com/judge-orders-nra-to-reveal-names-of-lloyds-of-london-agents/

    Unfortunately, Lloyds is still on the hook for claims against years when it covered the corrupt vampire coven of officers & self-dealing derelict clown-board members. That’s to the extent the claims result from fraud, embezzlement or other criminal behavior, which is illegal to insure. I doubt Lloyds would pay out on that. So maybe there’s a silver lining. The vamps should have to cough up the self-dealing cash, the “expense accounts”, the sweetheart contracts, money effectively laundered through vendors for $1 million director, officer and other contracts undisclosed to the membership (e.g. N), even the cost of the rubber-stamp “board meetings” that are nothing but junkets.

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    1. Correction: That’s to the extent the claims DO NOT result from fraud, embezzlement or other criminal behavior, which is illegal to insure.

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