Directors' and Officers' Liability Insurance(D&O insurance) is the liability insurance which the insurer shall pay the loss of each and every Director or Officer of the company arising from any claim or claims first made against the Directors or Officers during the policy period for any alleged in their respective capacities as Directors or Officers of the company. Many corporations in Korea are purchasing D&O insurance as expecting that it protects the directors and officers from personal liability sufficiently. However, the Insurer shall not be liable to make any payment for loss in connection with any claim or claims-made against the Directors or Officers arising out of any exclusions in D&O insurance policy. In this article was discussed the exclusions relating to specific conduct of an insured of D&O insurance policy in korean such as the gaining in fact of any personal profit or advantage, the committing in fact of any criminal act, the committing in fact of any ordinance violations, the payment to the Insureds of any illegal remuneration, profits in fact made from the illegal insider trading, payment of commissions, gratuities, benefits or any other flavor. This research finds that directors and officers who fail to exercise their duty of care or duty of loyalty are protected by the D&O insurance because it is construed that their breach of duty of care or duty of loyalty does not fall on the exclusion of the committing in fact of any ordinance violations.

Directors' and Officers' Liability Insurance(D&O insurance) is the liability insurance which the insurer shall pay the loss of each and every Director or Officer of the company arising from any claim or claims first made against the Directors or Officers during the policy period for any alleged in their respective capacities as Directors or Officers of the company. Many corporations in Korea are purchasing D&O insurance as expecting that it protects the directors and officers from personal liability sufficiently. However, the Insurer shall not be liable to make any payment for loss in connection with any claim or claims-made against the Directors or Officers arising out of any exclusions in D&O insurance policy. In this article was discussed the exclusions relating to specific conduct of an insured of D&O insurance policy in korean such as the gaining in fact of any personal profit or advantage, the committing in fact of any criminal act, the committing in fact of any ordinance violations, the payment to the Insureds of any illegal remuneration, profits in fact made from the illegal insider trading, payment of commissions, gratuities, benefits or any other flavor. This research finds that directors and officers who fail to exercise their duty of care or duty of loyalty are protected by the D&O insurance because it is construed that their breach of duty of care or duty of loyalty does not fall on the exclusion of the committing in fact of any ordinance violations.

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D&O insurance, exclusion, personal profit, criminal act, ordinance violations, illegal remuneration, insider trading