Civil Money Penalties (CMP) Personal Protection Policy



One of our preferred carriers has developed this unique product to address the coverage gap resulting from the FDIC mandate that coverage could no longer be endorsed to financial institution’s Directors & Officers (D&O) Policy. The CMP Personal Protection Policy is a separate, stand-alone insurance policy that is purchased directly by the D&Os of Community Banks. The bank does not pay for, nor is it an insured party under the contract.

Description of Coverage
The CMP policy insures the “Institution-affiliated Party” (designated individual) against CMPs leveled against them by a federal banking regulatory agency.


  • Civil Money Penalties means monetary penalties or fines imposed by a Regulatory Agency against the Institution-affiliated Party. The term does not include defense expenses, fees, multiplied damage awards, taxes, disgorgement, and matters uninsurable under the law. For purposes of determining the insurability of Civil Money Penalties, the law of the jurisdiction most favorable to the insurability of such penalties or damages will apply.
  • Wrongful Act means any actual or alleged error, omission, misstatement, misleading statement, neglect or breach of duty by the Institution-affiliated Party while acting in his or her capacity as a duly elected or appointed director, trustee, officer, governor, employee, member of the board of managers or trustees, or any equivalent position, of the Company.

Additional Coverage Facts

  • This product is a "primary" policy, written on an E&S (Excess and Surplus) basis.
  • The bank must meet our preferred carrier's underwriting guidelines in order for the D&Os to qualify for coverage.
  • Coverage is available on an annual basis; however, coverage may be written to expire at the same time as the existing D&O policy, in order to obtain common expiration dates.
  • In determining the insurability of CMPs, the law of the jurisdiction most favorable to the insurability of such penalties or fines applies.

This new CMP product was designed specifically to help community banks attract quality management, while at the same time providing the D&Os with 'peace of mind' protection.

Financial Institution Insurance Application pdf



Roster Detail
Mr. Charles J. Maggard
Charles J. Maggard
President & CEO
(502) 736-2671
email Chuck
Mr. Brandon Maggard
Brandon Maggard
Financial Institution Specialist
(502) 736-1298
email Brandon
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