Opinion ID: 1230168
Heading Depth: 1
Heading Rank: 3

Heading: letters

Text: Calinger does not dispute that under the unambiguous terms of the policy, CNA has no obligation to provide coverage for the Konz claim. Instead, he claims that when he purchased the policy, he and CNA, acting through Goodwin, reached an agreement about the scope of coverage. Calinger argues that this agreement, instead of the policy, should provide the terms of the contract. He contends that because a question exists whether the terms of the agreement with Goodwin are broad enough to cover the Konz claim, the court erred in granting summary judgment. To support his argument, Calinger relies on an exchange of letters between him and Goodwin. On January 4, 1990, Goodwin sent a letter to Calinger, apparently in response to an application for insurance. It states: Just received a memo from the Company [CNA] stating that they can offer your firm coverage for $1,000,000 per claim, $1,000,000 aggregate, with a $1,000 deductible, and WITH FULL PRIOR ACTS COVERAGE, for an annual premium indication of $1,721.00, to be effective December 29, 1989. There is also available at an additional annual premium of $30.00 per attorney Defendants Reimbursement. See enclosed and let us know if you desire this coverage. If this would meet with your approval send your request to issue and your check for the full annual premium to this office by January 18, 1990, for processing. (Emphasis in original.) Calinger's secretary responded to the letter from Goodwin on January 18, 1990. The January 18 letter states: Enclosed please find Mr. Calinger's check ... in the amount of $1,751.00 for the coverage stated in your letter dated January 4, 1990. This check is for the annual premium of $1,721.00, and the added annual coverage of $30.00 for the Defendants Reimbursement. (Emphasis supplied.) According to Calinger, the January 4, 1990, letter does not offer claims-made coverage. Rather, he construes the language WITH FULL PRIOR ACTS COVERAGE in the January 4 letter as offering coverage for any act occurring before the effective date of the policy, regardless of when the claim was made. Under this interpretation of the language in the January 4 letter, the CNA insurance would cover the Konz claim because the acts giving rise to the Konz claim occurred before the effective date of the policy.