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	Home > Medical > FAQ F.A.Q. Q. What is the distinction between "Claims-Made" policies and "Occurrence" policies? A. "Claims-Made" policy covers claims that are made during the policy period provided that the incident giving rise to the claim occurred on or before the retroactive date and on or before the termination date of the policy. An "Occurrence" policy covers claims, which arise from incidents, which occur during the policy period regardless of when the claim is made. In other words, in the event of a claim, coverage will be provided by: *The policy in force when the claim is made, as long as the incident which resulted in the claim occurred on or after the Retroactive Date and on or before the Termination Date, if the Insured is on a "Claims-Made" program; or *The policy, which was in force when the incident occurred which, resulted in the claim, if the policyholder is on an "Occurrence" program. Q. What is Prior Acts Coverage? A. Prior Acts ("Nose") coverage refers to coverage for acts that took place prior to the inception or effective date of the first Claims-Made policy written by one insurer that replaces the "Claims-Made policy written by the prior insurer. In order for a policyholder to avoid gaps in coverage it is important to remember moving from one insurer to another that either "Tail" or Prior Acts coverage is required. Q. What is a retroactive date? A. A provision found in Claims- Made policies that establishes the first date of coverage for injuries or damages that occurred on/or before a specified date even if the claim is first made during the policy period. Q. What is "Tail" endorsement and what does it cover? A. The correct name for the "Tail" endorsement is the Extended Reporting Period Endorsement because it extends the time to report claims beyond the termination date of coverage. Tail coverage extension is available due to death, disability, or retirement. For coverage to apply under a "Tail" the alleged act or omission giving rise to the claim must have taken place on or after the retroactive date of the coverage and on or before the coverage termination date. The "Tail" endorsement covers claims arising from incidents occurring during the period of time between the retroactive date and the termination date. Q. What is AM Best and what factors influence their ratings? A. AM Best Co., established in1899, is the world's oldest and most authoritative insurance rating and information source. There are several factors that influence AM Best rating, including global market position, exceptional balance sheet strength, sustained profitable growth, and demonstrated success of its management strategies. Q. Why is a consent to settle clause important? A. Some professional liability insurance contain a consent to settle clause. This is very important! We will not settle any claim without your written consent. Many insurance companies cannot and do not guarantee this. They can settle a suit on your behalf without your consent. This is perfectly legal to do when a policy doesn't contain consent to settle clause. Most doctors want to know that they will have input with regard to a claim or lawsuit, that's why our consent to settle clause is so valuable.