Did you know that most D & O policies have a provision that makes them fully earned when there’s a change in ownership or dissolution of the board? You may have noticed over the years that the underwriting process for D&O coverage has become more stringent. Typically, when a company is sold or merged with another there are nondisclosure documents that prevent information from being shared with outside entities. When a premium finance company finds out about a change in ownership it’s always after the completion of the transaction. If the D&O policy is canceled there would be no return premium to cover the outstanding balance on the loan. Unfortunately, there’s no way to determine when or if this is going to happen during a policy period.