Whether it be on the sale or purchase side of the loan participation transaction,
there is an ever-increasing incident of lender liability allegations involving one
financial institution with another. Even if no wrong-doing can be proven, it
must be defended which can certainly be expensive.

Every community bank should assess their FI Bond Agreement E Securities
and Signature Guarantees. Covers loss resulting in acquiring, selling, delivering,
giving value, extending credit or assuming liability on the faith of a certificated

The National Council on Compensation Insurance (NCCI) has filed a “split point” change in its workers-compensation experience rating plan with state insurance departments that could have a significant impact on your business. This rating change could increase or decrease your experience rating mod as it is implemented over the next three years.
Note: Take a look at NCCI’s “The ABC’s of Experience Rating” which explains in not-too- technical terms the premise for the “split point”: http://www.ncci.com/media/pdf/abc_Exp_Rating.pdf

Several times a year I like to stick my toe into the claims pool and check the temperature.  I contact insurance carriers that specialize in community banks to determine the types of claims that are being filed by their insureds.  The consensus is that Lender Liability suits are on the rise. When a mortgage defaults, the lenders are filing foreclosure actions against the borrowers.  The borrowers are no longer accepting the foreclosure as a consequence of their inability to pay.  They now file counterclaims stating that the lender took advantage of the unsophisticated bor

With banking being one of the most regulated industries, you have to ask….

“Are we covered for that, or not?”

 Having insufficient insurance coverage is a risk you cannot afford to take!