Directors' and Officers' Liability Insurance

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Multiple Choice

What is the primary purpose of Directors' and Officers' Liability Insurance (D&O)?

  1. To protect the personal assets of directors and officers in case of a lawsuit.
  2. To cover the legal expenses incurred by the company in defending a lawsuit against its directors and officers.
  3. To reimburse the company for any losses it incurs as a result of a lawsuit against its directors and officers.
  4. To provide coverage for the company's assets in case of a lawsuit against its directors and officers.
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