Question

Sunrise hospital serves a suburban community in the Phoenix, Arizona, area. Amelia Elder, president of the local bank, has been appointed to the hospital's board of directors. Sunrise is looking to expand facilities on their existing campus but is being sued by the adjacent residential neighborhood as being detrimental to their property values and quality of life. Sunrise and each of the individual members of the board of directors are named in the suit. Which of the following insurance policies protects Ms. Elder?

Answer 1

Ms. Elder can be protected by a Directors and Officers (D&O) Liability Insurance policy. This type of insurance typically covers the legal expenses and damages associated with lawsuits brought against the directors and officers of a company, including claims related to alleged malfeasance or negligence in carrying out their duties.

Step-by-step explanation:

Ms. Elder can be protected by a Directors and Officers (D&O) Liability Insurance policy. Ms. Elder can be protected by a Directors and Officers (D&O) Liability Insurance policy. This type of insurance typically covers the legal expenses and damages associated with lawsuits brought against the directors and officers of a company, including claims related to alleged malfeasance or negligence in carrying out their duties.

This type of insurance typically covers the legal expenses and damages associated with lawsuits brought against the directors and officers of a company, including claims related to alleged malfeasance or negligence in carrying out their duties. It is designed to protect individuals holding positions on the board of directors, like Ms. Elder, from personal liability.