Investment Fraud Insurance was designed to protect you as a shareholder from severe shocks to the share price which may cause you to lose significant value in your investments in a short period of time.
The share price trigger indicates to us when there was a news event which falls within the scope of the policy which has caused significant damages to shareholders.
The Share price trigger is also used as a reference point to pay claims. Once the share price trigger is met, this price at which the trigger was met is used as a reference price for paying claims – See the “Claims” Section for more.
In summary, the triggers that determine whether your Investment Fraud Insurance policy will pay out are:
1. Allegations of wrongdoing by directors surface via multiple reputable sources
2. The share price moves more than 10% down from the Opening Price on the News Date or the day after.
What happens when the share price trigger is met?
If you choose to sell your shares as a result of the management fraud, you will be paid out a claim (If there is a claim amount due to you - see Claims section).