n NISM Certifications
X NISM Series X
Medium

The Directors & Officers Liability Insurance covers individuals such as board members, management, and employees in managerial roles against personal liabilities arising from wrongful acts in their official capacity.

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    It insures all Directors and Officers of the company

  2. It insures members of the board of directors, the management and employee performing a supervisory or managerial role

    Correct answer

  3. C

    It insures all Directors and Officers of the company who are working in finance and auditing role

  4. D

    It insures only the Directors and Officers who have high outstanding personal liabilities

Why this is the answer

The policy covers individuals in managerial and supervisory positions against liabilities from wrongful acts in their official roles.

Test yourself for real

Take a full NISM Series X mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.