Question

Dr. Keaton had an Occurrence Medical Liability policy with Ace Insurance from March 1, 2010, until March 31, 2013, at which time he switched to DEF Insurance and a Claims Made policy. The policy with DEF Insurance was in effect from April 1, 2013, until April 31, 2015. Which lawsuit would trigger the Ace Insurance policy to pay?

a) A lawsuit filed on April 10, 2013
b) A lawsuit filed on April 20, 2013
c) A lawsuit filed on April 1, 2015
d) A lawsuit filed on May 1, 2015

Answer 1

A lawsuit filed on April 1, 2015 would trigger the Ace Insurance policy to pay.

Step-by-step explanation:

The lawsuit that would trigger the Ace Insurance policy to pay is option c) A lawsuit filed on April 1, 2015. This is because the Ace Insurance policy was in effect from March 1, 2010, until March 31, 2013. The transition to the DEF Insurance policy with a Claims Made policy occurred on April 1, 2013. Therefore, any lawsuit filed after this transition date would fall under the DEF Insurance policy.