Claims Made And Reported In E&O Policies And Prior Knowledge Of The Insured

The Quebec Superior Court recently ruled, in Teolis et Clinique Podiatrique de l'Est inc. c. Iacono, Lloyd's et American Home, that two professional liability carriers insuring a financial planner were not obliged to compensate a claim made by the client of the financial planner.

The ruling addresses the prior knowledge of the financial planner with regards to complaints arising out of his services, which were made before the inception of the professional liability policies, as well as the claim, although made by the client against his financial planner within the policy period, was not reported by the insured financial planner against his professional insurers during the policy period.