Directors, Officers and Company Liability

A single-policy solution to protect the assets of directors, officers and companies against suits brought by shareholders, customers, regulators, employees and other third parties in conjunction with professional services and non-professional exposures. We offer an expansive selection of professional liability choices with the flexibility to select only the coverage your financial institution requires.

Since D&O insurance is not subject to regulatory oversight, the language in different carriers policy forms can vary drastically.  To make matters worse, underwriters can further restrict coverage by adding restrictive endorsements.

We complete the due diligence on the different carriers and their policy forms.  We can help you understand the differences in contract language and help you find effective coverage.  We not only negotiate for the very best pricing for your bank, but also for the broadest coverage.

Coverages Available

• Directors & Officers Liability
• Bankers Professional Liability
• Lender Liability
• Employment Practices Liability
• Third Party Harassment
• Fiduciary Liability
• Cyber Liability
• Depositor Liability
• Securities Liability
• Trust Errors and Omissions

All Products

Financial Institution Bond

The Financial Institution Bond is used to insure your bank against employee dishonesty, robbery, forgery, burglary, and other crime exposures.  Through our various markets, we can offer a single-policy solution that expands the basic coverages provided by the Surety Association of America to provide one comprehensive solution to address the specific coverage needs of your financial institution. To help prevent fraud and dishonesty, internal precautions such as dual controls, separation of duties, mandatory vacation time and operational audits are good deterrents. However, every financial institution needs insurance coverage when criminals are successful in circumventing internal controls, thus causing the institution or a customer to sustain a loss.

The Financial Institution Bond provides the fidelity coverage required by regulators and covers other types of fraud exposures your financial institution inevitably faces while doing business in the 21st century. We use a thorough risk analysis checklist, peer analysis, and benchmarking in order to make sure your bank has the coverages and limits that it needs.

All Products

Cyber/Privacy Liability

Data breaches take many forms. Some derive from external hackers; others from malicious insiders. A third – and surprisingly large category – derive from simple carelessness. Many pose a real threat to the individuals whose personally identifiable data has been lost or stolen. Others prove on investigation to be false alarms, but the forensic costs of establishing this can be high. It’s no surprise that three of the top five fraud threats of concern to the FDIC are cyber-related. Cyber Liability is a unique insurance, loss control and risk mitigation service that provides a comprehensive service to notify and protect the customers of policyholders that have suffered a data breach.

Coverage highlights include:

• Liability coverage for failing to protect the confidential information of others from unauthorized access.
• First Party coverage for expenses involved in the handling of a breach event.
• Access to an experienced team of experts who can help you successfully manage a data breach.
• A separate sublimit of coverage for fines and penalties resulting from non-compliance with published Payment Card Industry (PCI) data security standards.
• Credit and identity monitoring services start at breaches over 100 or 250 notified individuals, depending on company size.

BBR Short Form Application

Ransomware: Prevention and Response Best Practices

Claims Examples

Excess Deposit Bonds

EDB is a single-policy solution to protect the depositors of financial institutions in excess of FDIC limits. With Excess Deposit Bonds financial institutions can attract and retain larger deposits while providing peace of mind to their key accounts and customers.

EDB is a cost-effective means to provide depositors with coverage that is over and above what is provided by the FDIC. EDB can be provided for all account and depositor types and puts the depositor in complete control of their excess deposit coverage.

Key Coverage Features

• Helps to attract larger deposits
• Complies with state regulations
• Avoids pledging securities

Benefits for the Financial Institution

• Brief application and financial review for acceptability
• Easy to use form to schedule depositors and make changes
• Premiums calculated on limits used, NOT on limits available
• Generally more cost effective than brokered deposits

Benefits for the Depositor

• Maintains insured status and the right to file a claim
• Certificate of insurance issued in the depositors’ name
• Certificate is non-cancellable during bond period
• Depositor notified of impending expirations and availability of a replacement bond

Please note: The above coverage descriptions are provided for educational and informational purposes only. Please refer to your contract for terms and conditions specific to your company. All coverage options are subject to underwriting guidelines.

Civil Money Penalties (CMP) Personal Protection Policy

One of our preferred carriers has developed this unique product to address the coverage gap resulting from the FDIC mandate that coverage could no longer be endorsed to financial institution’s Directors & Officers (D&O) Policy. The CMP Personal Protection Policy is a separate, stand-alone insurance policy that is purchased directly by the D&Os of Community Banks. The bank does not pay for, nor is it an insured party under the contract.

Description of Coverage

The CMP policy insures the “Institution-affiliated Party” (designated individual) against CMPs leveled against them by a federal banking regulatory agency.

Definitions

• Civil Money Penalties means monetary penalties or fines imposed by a Regulatory Agency against the Institution-affiliated Party. The term does not include defense expenses, fees, multiplied damage awards, taxes, disgorgement, and matters uninsurable under the law. For purposes of determining the insurability of Civil Money Penalties, the law of the jurisdiction most favorable to the insurability of such penalties or damages will apply.
• Wrongful Act means any actual or alleged error, omission, misstatement, misleading statement, neglect or breach of duty by the Institution-affiliated Party while acting in his or her capacity as a duly elected or appointed director, trustee, officer, governor, employee, member of the board of managers or trustees, or any equivalent position, of the Company.

Additional Coverage Facts

• This product is a “primary” policy, written on an E&S (Excess and Surplus) basis.
• The bank must meet our preferred carrier’s underwriting guidelines in order for the D&Os to qualify for coverage.
• Coverage is available on an annual basis; however, coverage may be written to expire at the same time as the existing D&O policy, in order to obtain common expiration dates.
• In determining the insurability of CMPs, the law of the jurisdiction most favorable to the insurability of such penalties or fines applies.

This new CMP product was designed specifically to help community banks attract quality management, while at the same time providing the D&Os with ‘peace of mind’ protection.

CMP Packet

Blanket Mortgage Protection

Is keeping track of your mortgagor’s hazard insurance coverage costing you a lot of time, effort and expense? Our Mortgage Protection program requires only that you confirm adequate mortgagor insurance coverage at loan closing. There is no need thereafter to track the mortgagor’s insurance coverage, or to react to known lapses, non-renewals or cancellations of mortgagor coverage. NO  MORE FORCE PLACING.

All real-estate secured loans, including first mortgages, second mortgages, home equity lines of credit and commercial mortgages qualify for coverage.

Our Mortgage Protection programs protect your mortgage portfolio against:

• Property Loss perils “required” in the loan documents.
• Additional perils not required in the loan documents, and not normally included in most personal or commercial property policies purchased by borrowers (flood and collapse, for example).

Errors and omissions liability coverage for a number of loan servicing activities.

Blanket Mortgage Hazard Application

Blanket Mortgage Impairment Application

Master Property and Liability

Our Master Property Programs provide mortgage lenders and loan servicers with a simple and easy way to protect their interest in property securing their mortgage loans. Our policies provide:

• Hazard coverage on a force-placed basis for those borrowers who are in violation of their mortgage terms because their own insurance on the mortgaged property has lapsed or cancelled and has not been reinstated or replaced; and
• Hazard coverage for OREO properties on which the lender or servicer has foreclosed and taken title to the property.
• Utilize a simple, user friendly website in order to procure coverage for: Property, Liability, or Flood.

Mortgage Hazard Application

Lenders Single Interest (a.k.a. VSI)

We handle VSI differently than most agencies.  While we can certainly provide your bank a proposal evaluated by price, however we suggest a consultation about the loan portfolio.  Let us design the most comprehensive contract for your bank.

Available coverages include:

• “All Risk” Physical Damage
• Instrument Non-Filing Errors and Omissions
• Skip and Confiscation
• Physical Damage to Repossessed Collateral
• “Waiver of ACV” rider – Like having “GAP” on your VSI

LSI Application

Lenders Performance Bond

The Lender’s Performance Bond, available in selected states, is an innovative product for second mortgage and home equity lenders. It provides an alternative to securing time-consuming and costly land records searches to identify existing liens and encumbrances on the property which will be securing the loan. This coverage protects the lender from losses due to undisclosed or unknown liens that are superior to the lender’s intended secondary lien position at loan origination, and which:

• Existed on or before loan origination
• Are superior to the lender’s secondary lien position
• We’re not disclosed by the borrower; and
• The lender did not know existed.

L&M LPP app

Employee Benefits

Providing affordable benefit plans for your employees is an integral part of a total benefits package. Before quoting any products, Lisa Mattingly analyzes the prospective client’s current benefit package to check for coverage gaps as well as duplicate lines of coverage.  Lisa will perform due diligence of any tax advantaged plans to ensure they do not negatively impact the customer or group come tax time.  KenBanc designs benefit plans that work for your business and provide service that never stops. Group and Individual product offerings include:

• Medical plans (PPO and High Deductible health plans)
• Dental
• Vision
• Life insurance- employer sponsored and voluntary
• Disability- short and long term policies
• Long Term Care
• Voluntary products (accident, critical illness, cancer insurance)

Vive

Q: What is Vive?

A: Vive is fast, easy, profitable term life insurance; its user-friendly online, paperless process provides competitively priced plans.

With Vive you can provide your clients with much-needed term life insurance protection in as little as 20 minutes, per case. Vive does the rest!

Discover a faster, easier, and more profitable way to write term life insurance with Vive.

Features and Benefits:

• Fast, easy-to-use, online system
• Competitive premiums from leading carriers you and your clients know and trust
• Paperless electronic signature option
• Competitive compensation
• Make sales in person or by phone
• Improve client retention
• Place more policies

Try Vive for your next case!

Mortgage Life / Term Life

In addition to the standard credit life program, we are pleased to offer what we call our Credit Ordinary program. These are simplified term life products your loan staff can offer to their customers. These flexible products are not bound by the same limitations as credit life products.  In many states, they can be written using only the Limited Lines Credit insurance license.

Key program points:

• Can be sold via single premium (added to loan), monthly bank draft or escrow.
• Very user friendly website for quotes and applications.
• Automated incentive payments to your lenders via ACH.
• Write coverages up to $350,000, terms up to 30 years.
• Decreasing or Level coverages available.
• Initial and ongoing training, of your staff, by your representative.
• Can be sold to real estate loan customers.

Premium/Payment Calculator

What is GAP?

If a vehicle is totaled or stolen, the borrower’s primary insurance company settlement can be significantly less than the outstanding loan balance. This may create a deficiency balance or a “gap” resulting in a serious financial hardship for your borrower. The “gap” may even jeopardize repayment of the loan. GAP is designed to relieve your borrower of the responsibility for the remainder of the loan balance that their primary insurance carrier does not cover.

What does GAP cover?

GAP covers the difference between the borrower’s outstanding loan balance and the actual cash value of the vehicle (primary insurance company settlement) less any deductions. GAP also covers up to $1,000 of the borrower’s deductible if there is a “gap” after the primary insurance settlement is paid. It is covered as part of the deficiency balance and is not paid directly to the borrower.

Borrower benefits

• Low cost protection with a 60-day free look.
• Eliminates the out-of-pocket expense for the remaining loan balance after loss settlement.
• Helps the borrower avoid financial hardship and afford a replacement vehicle.
• Prevents deficiency balance from being added to new loan.
• Helps protect the borrower’s credit rating.

Credit Life Insurance Program

Yes, Credit Life is still a viable product for your bank to offer its customers!  Let us help you navigate selling this valuable product in a post Dodd Frank world.  We can train your lender as to when and where the product can and cannot be sold, and help them increase penetration.  Attractive commissions, as well as the potential for dividends earned through participation in the KenBanc Reinsurance captive allow your bank to make substantial fee income from our program.

Key program points:

• Attractive commissions
• Seamless integration with your loan software
• Automated incentive payments to your officers via ACH
• Initial and ongoing training of your staff

BOLI (Bank Owned Life Insurance)

Bank-owned life insurance is a tax-advantaged, cost efficient asset that provides the opportunity for higher tax equivalent returns than many bank-eligible investments.  For the past three decades, BOLI helps banks offset the rising cost of employee benefits.   Let us establish BOLI strategies for your bank and increase earnings while offsetting employee benefit liabilities.  We offer the following BOLI portfolio services:

• Portfolio design and management
• General account, separate account, and hybrid products
• Risk assessment
• Accounting, regulatory, and tax assistance
• Liquidity and cash flow analysis
• Peer analysis
• Concentration of risk and portfolio diversification
• Performance/ Yield tracking

Executive Benefits

Attracting and retaining key employees is vital to the long term success of any organization.  Banc Consulting Partners offers a variety of nonqualified benefit solutions that can be customized to help you attract, retain, and reward the employees who drive success in your bank. We can help you design programs that reward success and innovation without subjecting the bank to unnecessary risk.  Our goal is to help you find a balance between risk and reward.  A few of the plan design services we offer include:

• Supplemental executive retirement plans
• Performance based SERP
• Deferred compensation
• Long term incentive
• Phantom stock
• Stock appreciation rights
• Director benefits
• Group term replacement life insurance
• Disability