The document describes DARCSTAR, a new type of directors' and officers' (D&O) insurance. It has one insuring clause rather than the conventional three sides (A, B, C). This provides clearer coverage for who and what is insured. DARCSTAR also features a voluntary payments clause, "all risks" coverage, favorable claims handling, and covers investigations and insolvency situations. It aims to provide simpler coverage than conventional D&O policies which can be complex with unclear terms.

1. DARCSTAR™
THE NEW FORCE IN D&O
COVER

2. NATURE OF CONVENTIONAL D&O
SIDE A
 Covers the non-indemnifiable personal liability of the directors
SIDE B
 Provides reimbursement where the company has indemnified the
directors
SIDE C
 Cover for the company for securities claims made against it

3. PROBLEMS WITH CONVENTIONAL
D&O
 Who is insured and for what?
 Three Insuring Clauses
 Complex terms
 Meaning of ‘indemnifiable loss’ in different jurisdictions:
 Lack of clarity as to company’s and insurer’s respective obligations
 Disputes about advancement of defence costs
 Subrogation and reputational issues
 Affirmative cover

4. THE DARCSTAR APPROACH
 One Insuring Clause
 Voluntary payments clause
 ‘All risks’ cover

5. THE DARCSTAR APPROACH (cont.)
 Fresh approach to investigations and enquiries:
 Notifiable circumstance
 Actual or potential conflict of interest
 Insolvency of company
 Early coverage determination
 Clear and favourable claims handling provisions
 Other features

6. CONVENTIONAL VS DARCSTAR
CONVENTIONAL DARCStar TM
D&O
NED NED
 Waiver of
Subrogation
Side B
Side C
Side A
DARCStar 100% allocation
for securities
claims
Sublimits
RoW Retention
US Retention
Securities Retention Securities Retention

7. CONVENTIONAL D&O CLAIM
COVERAGE A COVERAGE B COVERAGE C
(A-Side) (B-Side) (C-Side)
NOT
INDEMNIFIABLE
INDEMNIFIABLE
Execs’ Personal Assets Exposed Corporate Balance Sheet Exposed
No Self Insured Self Insured
Retention Retention
D&O Insurance Policy
Corporate
D&O Insurance Corporate
Entity Coverage
Policy Reimbursement
Securities Claims
Coverage
Only
EXECUTIVE’S ASSET PROTECTION CORPORATE RISK TRANSFER

8. DARCSTAR D&O CLAIM
SINGLE VOLUNTARY
INSURING PAYMENTS
CLAUSE CLAUSE
Executive Effective
Asset Corporate Risk
Protection Transfer