Section 9.17 Retroactivity

• Library: Insurance Practice 2015

Most claims-made policies provide coverage for claims made during the policy period based on wrongful acts taken before the policy period. Thus, their coverage is “retroactive.” Some policies explicitly exclude such coverage. Retroactivity may also be limited to a specific date. Retroactive coverage may also be extended when a policyholder has renewed its coverage, but not beyond the inception of coverage with that particular carrier. Sparks v. St. Paul Ins. Co., 495 A.2d 406, 408 (N.J. Sup. Ct. 1985).

The...