Second Circuit Determines Letter Threatening Litigation Constitutes A Claim First Made Prior To The Policy Period

The United States Court of Appeals for the Second Circuit, applying New York law, has held that a letter asserting legal liabilities and threatening litigation constitutes a claim first made prior to the policy period. Pine Mgmt., Inc. v. Colony Ins. Co., 2024 WL 1266244 (2d Cir. Mar. 26, 2024).

The insurer issued a claims-made-and-reported professional liability policy to the insured property development and management company. The policy period ran from August 1, 2018, to December 1, 2019, with a retroactive date of March 1, 2016. The policy defined "claim" as "a written demand received by [the insured] for monetary, nonmonetary, or injunctive relief" arising from a "Wrongful Act."