DISCLOSURE FORM
CLAIMS-MADE POLICY
IMPORTANT NOTICE TO POLICYHOLDER

THIS DISCLOSURE FORM IS NOT PART OF YOUR POLICY. IT MERELY DESCRIBES SOME OF THE MAJOR FEATURES OF OUR CLAIMS-MADE POLICY FORM. READ YOUR POLICY CAREFULLY TO DETERMINE RIGHTS, DUTIES, AND WHAT IS AND IS NOT COVERED. ONLY THE PROVISIONS OF YOUR POLICY DETERMINE THE SCOPE OF YOUR INSURANCE PROTECTION.

Your policy is a claims-made policy. It applies to things that occur after the retroactive date or prior acts exclusion date (if any) in the policy, and before the end of the policy period. It applies only to claims first made against the Insured and reported in writing to us after the inception date and before the end of the policy period. Upon termination of your policy, an “extended reporting period” or “discovery period” may be available, for an additional premium.

OCCURRENCE VS. CLAIMS-MADE
There is no difference in the kinds of events covered by either an “occurrence” policy or a “claims-made” policy. Claims for damages may be assigned to different policy periods, however, depending on which policy you have purchased.

In “occurrence” policies coverage is provided for liability because of damage or event THAT OCCUR DURING THE POLICY PERIOD, no matter when the claim is made.

In your “claims-made” policy, coverage is provided for liability IF THE CLAIM OR DAMAGES IS FIRST MADE AGAINST THE INSURED AND REPORTED TO US IN WRITING DURING THE POLICY PERIOD.

PRINCIPAL BENEFITS
The principal benefits and coverages are explained in detail in your claims-made policy. Please read it carefully and consult your insurance agent or broker or other professional insurance advisor about any questions you might have.

EXCEPTIONS, REDUCTIONS AND LIMITATIONS
Your claims-made policy contains certain exception, reductions and limitations. Please read them carefully and consult your insurance agent or broker or other professional insurance advisor about any questions you might have.

RENEWALS, TAILS AND EXTENDED REPORTING PERIODS
Your claims-made policy has some unique features relating to renewal, extended reporting periods, and coverage of occurrences with long periods of exposure. These special claims-made provisions are described below:

Special “Claims-Made” Provisions
Two concepts relating to continuity of coverage under the “claims-made” policy - and the pertinent policy provisions - are especially important to understand.

These involve 1) the Retroactive Date or Prior Acts Exclusion Date and 2) the Extended Reporting Period or Discovery Period.

Retroactive Date/Prior Acts Exclusion Date/”Nose” Coverage
Some people call coverage for things that happened prior to the beginning of the policy period “nose” coverage. If your policy has a retroactive date feature or an exclusion or other wording deleting coverage entirely for things that happened before a certain date (a prior acts exclusion), then your “nose” coverage is limited (or non-existent) and THERE IS NO COVERAGE FOR THINGS THAT HAPPENED PRIOR TO THAT DATE, NO MATTER WHEN THE INJURY OR DAMAGE OCCURS OR WHEN CLAIM IS MADE.

Extended Reporting Period/Discovery Period/”Tail” Coverage
When applicable, the Extended Reporting Period, or Discovery Period as it is called in some policies, will increase the time within which a claim may be eligible for the policy’s coverage. Some people call this “tail” coverage. The tail coverage helps to prevent the situation of a claim going uncovered because of cancellation or non-renewal of the policy or because the policy is replaced by one written on an “occurrence” basis. It provides for a period of time after the end of the policy period during which claims first made against the insured and reported to us in writing, for things that happened before the end of the policy period and are otherwise covered by the policy, will be covered. You can buy this tail coverage if your policy is cancelled or non-renewed either by you or by us; however, we must receive your written notice of election to buy the tail, together with the required payment, not later than a certain number of days as specified in the policy, and after the effective date of cancellation or non-renewal or you lose this right.

GENERAL COMMENTS
Claims-made policies have been around for many years for some types of liability insurance, but they are relatively new for other types. Please read your policy carefully so you become familiar with how it works, and be sure to consult your insurance agent or broker or other professional insurance advisor if you have any questions.