N.Y. Comp. Codes R. & Regs. tit. 11 § 262.7

Current through Register Vol. 46, No. 36, September 4, 2024

Section 262.7 - Coverage trigger

(a) Coverage for legal services insurance may be provided only where the event that is the basis for the action occurs during the policy period, notwithstanding when the action is brought, except as provided in subdivision (b) of this section.

(b) If legal service insurance is written as part of a liability insurance policy, and the policy may be written on a claims-made basis pursuant to Part 73 of this Title (Regulation 121), then the legal services insurance may be provided on a claims-made basis, in accordance with the provisions of that Part.

(c) Coverage for legal services insurance shall continue until the matter is adjudicated or settled, except that:

(1) coverage provided under section 262.4(b) of this Part may be provided only until either the final adjudication of the claim adverse to the insured or until the insured is found to have in fact committed the alleged wrongful act; and

(2) if legal service insurance is written as part of a liability insurance policy, and the policy provides that the limits of liability may be exhausted by defense costs, in accordance with the provisions of Part 71 of this Title (Regulation 107), then the legal services insurance coverage shall cease when the limits of liability are exhausted.

N.Y. Comp. Codes R. & Regs. Tit. 11 § 262.7