Opinion ID: 703183
Heading Depth: 3
Heading Rank: 1

Heading: The claim arises during the policy period, or

Text: 16 b. The error, omission, or negligent act giving rise to the claim took place prior to the policy period but after the retroactive date specified in the declarations, if applicable, provided that [the insured had no knowledge of the claim or the events giving rise to the claim, and had no other coverage]. 17 Subparagraph b was deleted by endorsement 10, and substituted with the following: 18 3.b. The error, omission or negligent act giving rise to the claim took place after 12/08/89. Except for: Golf Club of Tennessee, Nashville, Tennessee. 19 The policy defines the term claim broadly to include the filing of a suit against an insured which alleges an error or omission arising out of the insured's professional practice. Claims made is defined as a claim that is reported to us [Security] during the policy period. 20 The policy further states that it does not apply to any partnership, joint venture or corporation of which the insured is or was a partner, member or participant, unless such entity is designated in the declarations as a named insured. The policy defines who is an insured as well, stating that if the insured is an individual, he is insured only with respect to the conduct of a professional practice of which he is the sole owner. The insured's employees are also insureds, but only for acts within the scope of their employment by the insured. 21 Tucker testified that, except with respect to the unrelated project noted in endorsement 10, he negotiated with Security's broker for prospective coverage only, and did not intend to purchase coverage for any work performed by KT & A, Inc./T-H. Tucker testified that he understood that endorsement 10, together with the rest of the policy, precluded retroactive coverage. Security's agent testified by affidavit that he discussed the option of purchasing retroactive coverage with Tucker, and that Tucker's premium was discounted to reflect the fact that such coverage was not purchased. 22 Kevin Tucker & Associates, the sole proprietorship, never actually performed professional services. With the formation of the KT Group in February 1990, Security's policy was amended to add the KT Group as a named insured, and to reflect its corporate status. Kevin Tucker & Associates was retained as a named insured.