When is the continuity date applicable in a claims made policy?

What is definition of retro date on insurance policy and prior and pending litigation date?

These are dates used in claims made insurance.Retro date - Policy covers any claim alleging facts occurring after this datePrior & Pending Date: Covers all claims made after this date (no coverage for claims known at policy inception)

What is the difference between a claims made and occurrence general liability policy?

Claims Made vs OccurrenceCommercial General Liability and other types of Personal Liability policies are generally "Occurrence" policies. This means "losses that occur during the policy term" are eligible for claims servicing. The policy active at the time of the loss is the policy that would address coverage. Professional Liability Policies are generally "Claims Made" policies. This type of policy offers coverage for "claims made during the policy term". An injury that occurred long before the policy became active could still be covered based on the retro active coverage date.

Claims made policy?

"Claims Made Policy" - The Insured is indemnified in case a claim arises during the policy period, no matter when a claim may arise, the Policy pays the insured for the Claim, provided the policy is active since its retroactive date(inception date).

What does continuity date in an insurance policy mean?

The continuity date, sometimes referred to as the "prior knowledge" date refers to the date when designated parties first become aware of an incident which may be a covered act under an insurance policy. Continuity dates are exclusively found in claims made based insurance policies, never occurrence form insurance policies.Any act which any designated party is made aware of before the continuity date listed on the policy would not be covered by the policy in question. While this seems like it may present a major hole in coverage, it does not have to with good risk management practices. Assuming the line of coverage for which the continuity date applies exists when a designated person becomes aware of a possible covered act, as long as the act is reported immediately to the present insurance carrier, the claim will be covered no matter the date that the actual demand is presented to the insured. However, if the line of insurance is not in effect at the time the designated parties become aware of a possible covered act, no insurance will apply. This precludes adverse selection of risk by insurance companies. An entity could not become aware of an employment practices wrongful act and then purchase employment practices for the first time and expect the situation of which they were already aware to be covered under the policy.Do not confuse designated person with insured person, there is a meaningful difference. Often, insurance policies state that only the knowledge by an executive officer, director, human resources department, or legal department constitutes knowledge by the insured organization. Knowledge by rank and file employees would not constitute prior knowledge for the continuity date.Do not confuse the continuity date with the prior and pending litigation date. The prior and pending litigation date precludes claims regarding allegations made in litigation or administrative actions preceding the prior and pending date listed in the policy. The difference is for the continuity date exclusion to be triggered, formal litigation or administrative action does not have to have been filed while it would under the prior and pending date exclusion.More Information:(1) It especially occurs on the claims made policy (such as D&O, EPL, Fiduciary, etc.), when the insured change the carrier, the insured needs to know that there will be no gap in coverage form wrongful acts that occur prior to the inception date of the policy that do not result in a claim until after the new policy has incepted.(2) The initiation date of the first policy would be referred to as the continuity date.(3) Some insurers in the past put wrongful dates on new policies that precluded coverage for acts that occurred prior to the inception date. So now when an insured is considering switching insurers, the broker needs to address continuity to ensure that there will be no gap in coverage. In the current market, most insurers will agree to provide continuity.

Why is tail coverage in a claims made policy important?

Claims made policies must have an occurrence occur and be reported to the carrier within the policy period. The tail protects against claims made subsequent to the effective termination date of the occurring policy period.

Do you need to have a retro date on Employee benefits Liability claims made policy?

Type your answer here... yes

What is a 'retroactive period' in liability insurance?

The retroactive date sets how long before the inception of the policy that you are covered for negligent acts, error or omissions that you report during that policy. A retroactive date can match the policy inception date so that no prior acts are covered. From the date of the retro period would be the continuous period before the retro date during which the coverage is applicable

What is the definition of a Sunrise clause in Commercial General liability policy?

A Sunrise clause in a Commercial General Liability (CGL) policy refers to a provision that automatically extends coverage for certain claims that arise from incidents occurring before the policy's inception date, as long as those incidents were not known to the insured at the time of purchasing the policy. This clause helps protect businesses from potential liabilities that may surface after a new policy starts, ensuring continuity of coverage for prior risks. It is often subject to specific conditions and limitations outlined in the policy.

What does retro active date mean in an insurance policy?

The retroactive date is the date from which coverage is deemed valid. Retro active dates are most common in professional lines ( claims Made ) policies and indicate the beginning coverage date from which there has been no lapse. You will not find a retroactive date on an occurrence policy

What is the difference between a full occurrence policy vs a full occurrence with manifestation vs occurrence with manifestation and sunset clauses?

Claims Made Vs Occurrence Policies There are two primary forms of liability insurance policies - claims-made and occurrence policies. Most professional liability insurance, including directors and officers and employment practices liability insurance, is written on a claims-made basis.An occurrence policy obligates the insurance company to pay for claims arising out of occurrences during the policy period regardless of when the claim is reported. The policyholder is covered for any incident that occurs during the term of the policy regardless of when the claim arising from the incident is reported to the company. In some situations the claim might be made many years after the incident occurred. This leads to uncertainty for both the insured and the insurer.A claims-made policy protects an insured against claims or incidents that are reported while the policy is in force. Normally, a claims made policy provides coverage for acts occurring prior to the claims-made policy period. Coverage for acts occurring prior to the policy period is called "prior acts coverage," and the period prior to the policy period for which claims are covered is called the prior acts period. Prior acts coverage is usually only provided when a claims-made policy has been in force immediately prior to the current claims-made policy on a basis consistent with the prior policy. Prior acts coverage is defined as "full prior acts", covering acts occurring at any time prior to the current policy period, or is defined by a "retroactive date." When a retroactive date is used, prior acts coverage is provided from the retroactive date to the current policy period.

How long after the effective date of life insurance policy can a death claim be reported?

The key date for a life insurance policy is the date of death, rather than the effective date of the policy. Since a life insurance policy is a written contract, the law of the state in which the policy was issued will provide how long one has to file suit on a written contract. However, filing suit should be the last resort. The policy will probably have a section addressing "Claims". It will specify the procedure to be followed, what the company needs, and where the material is to be sent. It may also state a fixed period of time after death to submit the claim, or "as soon as practicable". This suggests that there is some flexibility in the timing, and that the insurer realizes that claims are usually not filed immediately.

What does effective policy date mean?

The Policy effective date is the date that your insurance coverage started under that policy.