Question

Su-lin owns a hair salon. She had a claims-made liability policy with ABC Insurance Inc. However, last month she did not renew her policy with ABC. Instead she bought a new policy, which is an occurrence-based liability policy with her cousin’s firm DEF Insurance Inc. Yesterday, she was told she was being sued for an accident that happened on her premises two months ago. A client tripped over a cord while getting out of the chair and broke her jaw. Identify the correct statement regarding her liability insurance. a. She is not covered as she has occurrence-based coverage with DEF Insurance. b. She is covered by DEF Insurance as she has occurrence-based coverage. c. She is not covered by either company as she had a claims-made policy when the accident happened. d. She is covered by ABC Insurance still has she had claims-made coverage.

          Su-lin owns a hair salon. She had a claims-made liability policy with ABC Insurance Inc. However, last month she did not renew her policy with ABC. Instead she bought a new policy, which is an occurrence-based liability policy with her cousin’s firm DEF Insurance Inc. Yesterday, she was told she was being sued for an accident that happened on her premises two months ago. A client tripped over a cord while getting out of the chair and broke her jaw. Identify the correct statement regarding her liability insurance.
a.
She is not covered as she has occurrence-based coverage with DEF Insurance.
b.
She is covered by DEF Insurance as she has occurrence-based coverage.
c.
She is not covered by either company as she had a claims-made policy when the accident happened.
d.
She is covered by ABC Insurance still has she had claims-made coverage.

Added by Robert C.

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