An independent, bank-specific insurance and risk management consultancy firm. IRA4BANKS was established in response to the FDIC's October 2013 Letter (see FIL-47-2013) regarding the importance of Directors and Officers Liability insurance and the coverage provided. In the letter, the Agency recommends that "Board Members and Executive Officers fully understand the answers to the following questions about their policy: •What protections do I want from my institution's D&O Policy? •What exclusions exist in my institution's D&O Policy? •Are any of the exclusions new, and if so, how do they change my coverage? •What is my potential personal financial exposure arising from each policy exclusion?" Recent history has taught us that being an outside board member or an executive officer of a FDIC insured financial institution creates personal, several, and financial liabilities. Although corporate indemnification agreements are considered the first line of defense, there are instances where this protection is not permitted. Two examples include: shareholder derivative actions and regulatory actions against a member of the board or an executive officer. The only resolution to these personal risks is a well written Directors and Officers Liability policy.