n NISM Certifications
X NISM Series X
Medium

The Directors and Officers liability insurance policy covers:

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Breach of law by directors or officers

  2. Personal claims against directors and officers

    Correct answer

  3. C

    Employment practice violations

  4. D

    Outstanding EMI liabilities

Why this is the answer

The policy insures directors and officers against personal liability arising from wrongful acts committed in their capacity.

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