Greenmail exclusion

{
  "id": "MLC-T-INS-001658",
  "term": "Greenmail exclusion",
  "field": "Insurance and risk management",
  "definition": "A provision in a Directors and Officers (D&O) liability insurance policy that excludes coverage for claims arising from payments made by a corporation to repurchase its own shares from a hostile bidder at a premium. This exclusion prevents the policy from covering the costs associated with deterring a takeover attempt through such financial maneuvers. It aims to limit the insurer's exposure to certain corporate defense strategies.",
  "url": "https://mlchart.com/terminology/insurance/greenmail-exclusion/"
}