Hartford exec dismissed over loose lips concerning Herbalife


Former VP in the director and officers group at Hartford Financial (HIG -0.3%) William Kelly says the insurer let him go after he told a reporter Herbalife (HLF -3%) had approached Hartford about purchasing a so-called directors-and-officers insurance policy. This type of insurance covers legal costs when board members and senior execs get sued.

Kelly says Hartford ultimately decided not to provide Herbalife with the requested insurance.

Kelly's comments came on the sidelines of a presentation Bill Ackman was giving lambasting Herbalife.

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Comments (20)
  • Lockchris63@gmail.com
    , contributor
    Comments (121) | Send Message
     
    lol, of course they didn't insure them. It's the Titantic.
    30 Jul 2014, 12:14 PM Reply Like
  • Quoth the Raven
    , contributor
    Comments (2063) | Send Message
     
    Yes, it's unprofessional to disclose this, but in years this VP will be given a medal for not insuring Herbalife.
    30 Jul 2014, 12:19 PM Reply Like
  • micium
    , contributor
    Comments (115) | Send Message
     
    It apparently was not his decision.
    30 Jul 2014, 12:56 PM Reply Like
  • Ferrari321
    , contributor
    Comments (52) | Send Message
     
    Lol hilarious that they even asked that. The gig is up
    30 Jul 2014, 12:19 PM Reply Like
  • Dave Ritchie
    , contributor
    Comments (2879) | Send Message
     
    The headline would better have been, "Hartford Financial Denies Directors-and-Officers Insurance Coverage for Herbalife".
    30 Jul 2014, 12:23 PM Reply Like
  • Curious2
    , contributor
    Comments (1662) | Send Message
     
    While he obviously broke company rules, I wonder why Hartford didn't just jack up the price to cover the risk?
    30 Jul 2014, 12:39 PM Reply Like
  • jcllier3
    , contributor
    Comments (58) | Send Message
     
    Exactly, that's how bad of a risk it is.
    30 Jul 2014, 12:51 PM Reply Like
  • Dave Ritchie
    , contributor
    Comments (2879) | Send Message
     
    Curious2: "I wonder why Hartford didn't just jack up the price to cover the risk?"

     

    Another bizop with a probability of loss similar to that of an MLM bizop.
    30 Jul 2014, 03:20 PM Reply Like
  • micium
    , contributor
    Comments (115) | Send Message
     
    D&O insurance is pretty difficult to get in the first place and not many companies will write it anymore.
    30 Jul 2014, 12:58 PM Reply Like
  • jcllier3
    , contributor
    Comments (58) | Send Message
     
    Not true at all. I know of at least 45 companies that write it. It's easy to get for most companies that aren't, you know, pyramid schemes.
    30 Jul 2014, 01:14 PM Reply Like
  • Lockchris63@gmail.com
    , contributor
    Comments (121) | Send Message
     
    Not true at all. Many companies offer it.
    30 Jul 2014, 01:59 PM Reply Like
  • hershalmuzzy
    , contributor
    Comments (120) | Send Message
     
    I wonder if Hartford has its own D & O insurance policy to protect them from their officers disclosing customer's private information.
    Also, this might dissuade other potential customers from using Hartford if their private information could be disclosed.
    30 Jul 2014, 12:59 PM Reply Like
  • Louisc13
    , contributor
    Comments (8) | Send Message
     
    For sure, it is not worthwhile to take risk which the expected value is negative.
    30 Jul 2014, 01:20 PM Reply Like
  • Lockchris63@gmail.com
    , contributor
    Comments (121) | Send Message
     
    It makes me want to use Hartford. They have the brains stay away from a disaster.
    30 Jul 2014, 02:00 PM Reply Like
  • rodani75
    , contributor
    Comments (38) | Send Message
     
    Typical scraping of the bottom of the barrel by the short brigade. All they achieve is to demonstrate their ignorance whilst at the same time their complete lack of objectivity.
    This is akin to going to an insurer and asking for coverage for legal costs in defending a claim which has already been threatened. Or to put it in a way that you clowns might understand, seeking insurance for flood damage to your home when an adjacent river is about to burst its banks.
    It is not surprising that coverage was denied given the widely publicised threats of legal attacks made on HLF and its principals.What is more surprising, perhaps, is that HLF thought that it was worth asking for it.
    30 Jul 2014, 02:19 PM Reply Like
  • Dave Ritchie
    , contributor
    Comments (2879) | Send Message
     
    Rodani75: "This is akin to...seeking insurance for flood damage to your home when an adjacent river is about to burst its banks."

     

    Well said!
    30 Jul 2014, 02:56 PM Reply Like
  • Truthfirst
    , contributor
    Comments (599) | Send Message
     
    very well said,

     

    they just keep going with the bull S
    30 Jul 2014, 06:43 PM Reply Like
  • talent1800
    , contributor
    Comments (1370) | Send Message
     
    "What is more surprising, perhaps, is that HLF thought that it was worth asking for it."
    hbl is just now realizing they could face serious legal costs.....?? enough said
    4 Aug 2014, 01:32 AM Reply Like
  • Dampflok
    , contributor
    Comments (1341) | Send Message
     
    Officer's insurance would not protect against clawbacks of monetary gains from fraud.
    30 Jul 2014, 02:40 PM Reply Like
  • P.Gadget
    , contributor
    Comments (464) | Send Message
     
    Wonder if this was a condition for Icahn's new board members joining?
    30 Jul 2014, 03:38 PM Reply Like
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