Prior Acts Coverage
What this clause says
This Policy shall apply to Claims first made during the Policy Period arising from Wrongful Acts occurring on or after the Retroactive Date stated in the Declarations, which is: Full Prior Acts.
What this actually means
Prior acts coverage means an incoming carrier accepts your existing retroactive date rather than resetting it to the inception of its own policy. Full prior acts means no retroactive date at all, so care delivered at any time in the past is within the reporting window.
What it means for an operator
This is the single most valuable thing to negotiate when changing markets, and it is frequently the reason a cheaper quote is not cheaper. A quote that resets the retroactive date leaves every year of past care uncovered unless you buy a tail, and a tail commonly costs one to three times the expiring annual premium. Compare quotes on prior acts before comparing them on price. In an acquisition the same principle applies in reverse: either the seller buys a tail or your program grants prior acts back before the seller owned the building, and whichever way it goes belongs in the purchase agreement with the cost allocated rather than raised in the week before closing.
Program notes
Full prior acts is available in the specialty senior care markets for accounts with continuous coverage and a readable loss history. A gap in coverage history is the usual reason it is refused.
Why the Policy Checker does not score this
This term is worth understanding and cannot be checked from a declarations page. There is no single field that would answer it, and scoring it from an assumption would produce a confident wrong finding, which is the one thing a tool like this must never do. It is defined here and left out of the check.
See this in your policy
Check this term against your own program.
Run the Policy CheckerRelated clauses
Common questions about this clause
- What happens to our insurance when we acquire a senior living building?
- How much does a tail policy cost for a senior living operator?
- What happens if the retroactive date on my nursing home policy is wrong?
- What happens to insurance at a senior care change of ownership?
- What does a related claims provision do on a nursing home policy?