Category: Insurance

Survey Shows Inattention to Homeowner’s Insurance Could Prove Devastating in the Event of a Disaster

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For the majority of Americans-even those making six figure incomes-their homes are their single biggest asset.  Furthermore, the value of homes continues to rise with the continuing strength of the real estate market.  Yet, a significant percentage of affluent homeowners are just not paying very much attention to protecting their most valuable personal asset, according to a survey conducted for Fireman’s Fund Insurance Company by Harris Interactive.

According to the survey, 94 percent of the respondents nationwide stated that the value of their home increased during the past five years.  The National Association of Realtors® reports that median existing-home prices in 2004 were 6.6 percent higher than a year earlier.  In some states such as California, a strong real estate market saw home values jump more than 20 percent in some areas from the previous year.

Yet, more than a quarter (27%) of those surveyed said they had not increased their insurance coverage to reflect their home’s increased value. Some of the most common reasons cited were lack of time to look into the need to increase coverage, and simply not knowing that they needed to change the policy’s limits to reflect a home’s change in value.

In addition to the rise of property values, home reconstruction and replacement costs are also climbing at a steady rate. With a healthy rise in new construction, recent hurricanes and ongoing trade disputes, the cost for lumber, plywood and other building materials is continuing to rise. According to the lumber industry publication Random Lengths, framing materials alone, such as 2-by-4s, rose nearly 40 percent in 2004 over the previous year.  Without the right insurance coverage, homeowners who experience a loss could see these higher costs coming straight out of their own pockets.

The survey, based on responses from more than 1,000 affluent homeowners nationwide, uncovered a consistent gap between what homeowners think is included in their coverage, and what actually is covered. Of those polled, 88 percent said they know what their homeowner’s policy does and does not cover, yet further questioning revealed that many respondents also believed that their homeowner’s policy covered more property than would actually be covered in the event of a disaster.  Only 37 percent of respondents correctly answered six of 12 questions about basic coverage on their homeowner’s and auto policies, such as the maximum amount of stolen cash that would be reimbursed if a home were burglarized ($200) or how much a standard policy will pay in temporary living expenses while a home is being rebuilt ($60,000). 

The survey showed that most affluent homeowners spend far more time managing their investment portfolios (an average of seven hours a month) than they do staying on top of the insurance coverage for their homes.  Seventy-six percent of those surveyed had reviewed their financial assets or investments within the last two months, but only half had reviewed insurance for their property assets within the past six months.  The survey found that respondents spend an average of 4.7 hours per year-a fraction of the time spent on their investment portfolios-managing their insurance coverage on their physical assets including their home.  This is true despite the fact that for nearly half (47%) of respondents, the value of their non-financial assets exceeds the value of their investment portfolio.

“The survey findings show a critical need for homeowners to communicate with their insurance agents and learn what their policies actually cover and when they should be updated, to ensure they are fully protected in the event of a disaster,” said Scott Garfield, vice president of Fireman’s Fund. “Homeowners also need to know that all policies are not created equal, and to understand the array of insurance options available in comparison to their current coverage before they are faced with a costly disaster.”

Be Careful to Avoid Aggressive Driving

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Are you an aggressive driver?  The National Highway Safety Administration has outlined certain common aggressive driving behaviors. 

 

  • Do you find yourself speeding up when someone tries to pass you or weaving in and out of traffic? 
  • Have you passed cars on the right or tailgated slower drivers in front of you? 
  • Do you flash your lights at a vehicle, use your horn in a non-emergency situation, or make obscene gestures to other drivers? 

 

If you answered yes to any of the above, you may be an aggressive driver.  Make a concerted effort to avoid those behaviors and set a good example for your passengers.  You never know, avoiding these behaviors might reduce your number of traffic tickets or accidents, and end up lowering your auto insurance premiums!

The Effects on Workers’ Compensation of an Aging Workforce Tapering Off

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Even though the median age of America’s workforce is increasing, its effects on the workers’ compensation system are ebbing, according to Harry Shuford, practice leader and chief economist for the National Council on Compensation Insurance, Inc. This research organization is the oldest and largest provider of workers’ compensation and employee injury data in the nation.

Shuford addressed his remarks to attendees of the annual Workers’ Compensation Educational Conference in a workshop titled “Are Baby Boomers a Bust for Workers’ Compensation?” The session also included Ned Wilson, director of planning and treasury at FCCI Insurance Group. It was one of seven sessions on national trends put on by The National Underwriter Company as part of its partnership with the Florida Workers’ Compensation Institute. The Institute runs the WCEC program, a partnership of the Florida Workers’ Compensation Institute and The National Underwriter Company.

Shuford noted that many workers have been negatively impacted by changes in their retirement systems, which are providing them with less money even though their longer life expectancy has dramatically increased the amount needed for retirement. While older employees in their fifties and sixties are continuing to work, younger workers have been dropping out.

Older workers are injured less frequently than their younger counterparts, but when involved in an accident, they have more severe claims with higher costs and longer recuperation times, Shuford said.One of the reasons for the higher claims costs are replacement wages. Older workers generally receive more compensation because their salaries are higher. In the future, however, differences in average weekly wages may shrink, Shuford added.

Differences in the types of injuries suffered by older and younger workers are also lessening, Shuford stated. However, there is a difference in the treatment cost between the two groups. Workers who are 45 to 65 years of age usually require 40 percent more treatment for an injury than younger workers, and the drugs older workers are prescribed are more expensive.

Wilson mentioned one statistic he couldn’t explain; that medical costs for the 25-and-under age group have risen 10 percent annually while costs in the 35 to 54 year old category have only gone up 7 percent each year.

Shuford noted that even as older workers remain in the work force, the percentage of people over age 65 still working is extremely small and that over age 65, the average weekly wage drops. For workers over 55, nearly 17 percent of their lost work time results from falls. He attributed this rise in fall-related accidents to older worker’s poor eyesight and an inability to move as well as they used to.To counteract these effects of aging, Shuford suggested that company loss control precautions should include better lighting, marking steps clearly and providing handrails.

Is a Monitored Alarm System the Right Choice for Your Home?

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Residential alarm systems get a lot of attention when talking about home security, but what choices do you have and what benefits are there?  Can you get a discount on your homeowner’s insurance if you have a system installed?  It is possible that just a sign from a security company on your window or in your yard may deter potential burglars, but educating yourself about what security companies have to offer can help you determine if an alarm system is right for your home.

Security companies offer a host of options, including protection against burglary, fire, and carbon monoxide, as well as medical monitoring and mobile monitoring.  In security systems, you have two basic choices:  monitored and unmonitored systems. 

Monitored systems will contact your monitoring company by telephone when activated.  The monitoring company will then dispatch the police, fire department, or other emergency personnel to your home.  The drawbacks, however, could be quite serious, depending on the situation.  The monitored system uses your telephone line to notify emergency personnel.  That means that your phone line will be in use and you would need a secondary phone line or a cellular phone to call for additional help.  If an intruder is bold enough to cut your telephone line before entering your home, the advantages of a monitored system are cut short.  Also, in the case of a false alarm, the police department may charge you for a trip out to your home.

Some monitoring companies will sell you the security system, but will not act as your monitoring company.  They may sub-contract with a monitoring firm who will be handling your monitoring.  You can find a secure monitoring company on your own, but if your company has an Underwriters Laboratory rating, you can trust they will be secure.

Unmonitored systems have advantages and disadvantages as well.  An unmonitored system usually has an audible alarm and possibly flashing lights, which notify neighbors that the security of your home has been breached.  This, however, poses a specific problem:  you must rely on your neighbors to take action if they see or hear your alarm system activated.  Your neighbors may not be at home, or, unfortunately, some neighbors will not want to get involved.  Consider organizing your community by initiating a neighborhood watch program and having get-togethers, so that you become vested in protecting each others safety.

For many, the advantages of a home security system are also financial.  Informing your homeowner’s insurance company that you have certain security measures in place can save you 5% to 20% on your homeowner’s policy.  Insurers will routinely give a 15% to 20% discount for homes equipped with a burglary and fire alarm system that is monitored by a third-party monitoring company.1

Considering an alarm system for your home may provide you with peace of mind, whether you are home or away.  Developing close ties to your neighbors can also provide you that same comfort.  If you are considering a monitored security system, contact your homeowner’s insurance company for details about discounts that may be available to you.  While the financial benefit from your insurance company may be an advantage to a security system, it may be greatly outweighed by the peace of mind you will feel in knowing your home is properly defended against burglary, fire, or other threats.

 

1 See http://homes.wsj.com/buysell/taxesandinsurance/20031202-smartmoney.html.

Practicing Safe Electrical Habits in Your Home

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A new survey commissioned by the Independent Insurance Agents & Brokers of America (IIABA) has shed considerable light on a serious problem:  electrical hazards in the home. 1  The U.S. Consumer Products Safety Commission (CPSC) says that there are an annual average of 165,380 electrical-related home structure fires, taking an average of more than 900 lives, injuring almost 7,000 people, and causing nearly $1.7 billion in property damage.  Suffice it to say, electrical hazards in your home are a serious concern.

There are several areas in your home that can easily be checked to greatly eliminate risk of electrical hazards.  Wall outlets should be checked for loose-fitting plugs, which can overheat and lead to fire.  Never force a plug into an outlet.  If the plug does not fit into the outlet, it should not be plugged in.  Along those same lines, never remove a ground prong from a three-prong plug so that it can fit into a two-prong outlet, as this can cause electrical shock.  Do not overload plugs or circuits with too many items.  Make sure all switch plate covers are secure and take care to cover wall outlets when children are around.  If you notice any discolored or hot outlet plates, take action immediately, as this may indicate a dangerous heat build up and possible fire threat.

Power cords and extension cords are also a potential safety concern.  Make sure you are only using cords in good condition, with no frayed or cracked housing.  Never nail or staple an extension cord to the wall or baseboard and do not place cords in high-traffic areas, or under items such as rugs, carpets, or furniture.  Keep in mind that extension cords are not permanent wiring and should not be used for prolonged periods of time.  Additionally, use power cords approved by Underwriter’s Laboratory (UL) or another independent testing facility.  Make sure the cord has been rated for the type of application you need it for.

Check your light fixtures and light bulbs.  Does the wattage of the light bulb exceed the recommendation on the fixture?  If so, replace it immediately with a light bulb that does not have higher wattage than what has been recommended by the manufacturer.  Make sure the bulb is screwed in tightly, as loose light bulbs may overheat and can be a potential safety hazard. 

Ensure that all appliances, from kitchen to bathroom, are certified by an independent testing laboratory, such as UL, CSA, or MET Labs, and follow the manufactures instructions carefully.

When it comes to circuit breakers in your home, get familiar with them.  Create a map to outline all outlets, rooms, fixtures, and appliances and where they are on your circuit breaker.  Circuit breakers and fuses should be the correct size and rating for their circuit.  Never replace a fuse with a different size from the one you are removing.

Required in homes since the early 1970’s, consider a GFCI, or ground fault circuit interrupter, on all general-purpose circuits in your home.  A GFCI can prevent accidental shock and electrocution by shutting off a circuit when a “leak” of electric current is detected off the circuit.  GFCIs should be tested monthly and after every major electrical storm.

AFCIs, or arc fault circuit interrupters, help prevent fires resulting from outlets, switches, and frayed or cracked power cords.  The AFCI senses the particular signature of an arc and acts to immediately shut off the circuit.  AFCIs are required in all new home construction in bedroom circuits, but should be considered as a safety measure in all homes and on general-purpose circuits.

In summary, there are many simple steps you can take to ensure safe electrical habits are used in your home.  If you have questions about avoiding electrical hazards or how to further protect your home, consult a trusted electrician who can ensure your home is up to code and safe for you and your family.

 

1  See Independent Insurance Agents & Brokers of America and the Electrical Safety Foundation International’s safety tips at:http://na.iiaa.org/ESSafetyTips_FINAL.pdf.

How to Prevent and Treat Mold in Your Home

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The impact of mold has become a prevalent topic recently, but do you know all you need to know about its impact on you and your home?  Although certain molds may be discussed more than others, all molds are treated the same when it comes to their potential health risks and their removal. 

It is easy to know if you have a mold problem.  Large mold infestations can be seen or smelled.  Mold grows naturally in the environment and may enter your home through open doors, windows, and ventilation systems such as heating and air conditioning.  Mold spores may even attach themselves to your clothing and pets, which then bring them inside the home.  Once inside, mold attaches itself to areas with moisture, such as a leaky roof, pipes, wet wallboard, plant pots, areas of condensation, and where flooding has occurred.  Many building products make a hospitable place for mold to grow.  

Stachybotrys chartarum is a greenish-black mold, which grows in areas with a high cellulose and low nitrogen content, such as fiberboard, gypsum board, paper, dust and lint.  Even carpet, fabric and upholstery can easily support mold growth.  

The most common health concerns resulting from mold exposure are allergy-type symptoms.  The severity of the reaction depends on the amount and duration of the exposure to the mold.  Individuals with chronic respiratory disease, including asthma, may experience difficulty breathing.  Also, those on immune suppression therapy may be at an increased risk for health problems associated with mold.  If you feel that you or your family members are at risk for infection, see your doctor for diagnosis and treatment.

Prevention is the key to combating mold. Just as with termites, buildings should be inspected for mold growth.  Areas affected by water damage should be inspected thoroughly.  Leaks and other conditions that supply moisture should be corrected, so as to prevent mold from taking root.  Remove and replace flood-damaged carpets and carpet pads.  Helpful tips are to keep humidity levels in your home below 50%, using air conditioning or a dehumidifier if necessary.  Also, make sure your home is well ventilated, checking heating and air conditioning units as well as exhaust fans.  Clean bathrooms and kitchens with mold-killing products.  And, consider using paint that contains a mold-inhibiting agent.

If you are going to rid your home of mold, a bleach and water solution will suffice for most jobs.  Mix 10 parts water to 1 part chlorine bleach and never mix bleach with ammonia.  Clean walls and other flood-damaged items with the bleach solution and discard moldy items.  Professionals may be needed to clean larger areas of mold.

Liability Insurance Is a Must-Have Protection for ERISA Fiduciaries

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Fiduciary liability under ERISA is an exposure individuals or organizations may have as a result of their position in relation to an employee benefits plan. ERISA fiduciaries can be personally liable for breaches, and can be held responsible for the breaches of co-fiduciaries. Either of these situations can impact a fiduciary financially; for individual fiduciaries, this can mean their personal assets may be at risk. Fiduciary liability insurance can offer some protection against this exposure.

Under ERISA, a fiduciary is any person (or organization) who the plan names as such, or who exercises discretionary authority or control with respect to the management or administration of a plan or its assets. This broad definition encompasses the plan sponsor, plan administrator, trustees, investment managers, consultants and actuaries, to name a few. On an individual level, it can snare the small business owner and employees who are involved in plan administration or management.

Legal liability can arise for plan fiduciaries when they are alleged to have failed in the obligations that ERISA establishes (prudence, acting in the best interests of plan beneficiaries, etc.). You don’t need a high-profile situation like Enron to trigger allegations of a fiduciary breach. Claims that a fiduciary duty has been breached can involve situations such as benefit claim denials; a reduction in benefits; inadequate plan funding; plan terminations; or questionable choice of an outside service provider, insurance company, or investment management firm. These claims can be filed by plan participants or beneficiaries, by a government agency (such as the Department of Labor), or by another fiduciary.

Fiduciary liability insurance can protect an insured fiduciary against the legal liability arising from alleged breaches of the duty, including the cost of the fiduciary’s defense. Fiduciary liability insurance should not be confused with a fidelity bond or with employee benefits liability insurance. A fidelity bond (also known as an ERISA bond) is for situations involving dishonesty, and its protections are for the plan and its beneficiaries. Employee benefits liability insurance protects against claims of administrative errors, and thus is quite narrow in its scope. Neither of these affords protection to a fiduciary that, for example, is alleged to have been imprudent in selecting an investment management firm for the company’s 401(k) plan.

Like any type of insurance, fiduciary liability insurance policies can vary, and finding the policy that is the best fit for you and your business requires research and understanding of the available options. The International Foundation of Employee Benefit Plans posts on its Web site a “Short List” of questions to ask when investigating these policies. For example, whom does the policy cover? Does the policy cover multiple plans and, if so, to what limits, and what would be the cost of covering each plan separately? Are defense costs counted against the plan’s indemnity limit? Is there coverage for penalties, fines or taxes assessed against fiduciaries?

These and other questions should form the basis for your conversation with your insurance broker when assessing the type of fiduciary liability insurance that is best for you and your business.

Thorough plan oversight, use of qualified benefit plan professionals, and proper training of employees who handle benefit plan functions are the key elements to ERISA compliance. However, an appropriate fiduciary liability insurance policy is a must for those situations when, for whatever reason, a fiduciary breach is alleged to have occurred.

Understanding Mold Exposures for the Homeowner

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National estimates show that one in three houses has a moisture problem, and one in ten houses has enough mold that could cause allergic reactions.  All of us are exposed to some mold every day with no side effects. We may breathe in mold spores that are present in the air or eat foods in which mold has begun to grow. People with mold allergies, however, may have a reaction if exposed to too much of the fungus.

While not everyone is allergic to mold, if a person has a mold allergy it can cause a variety of reactions throughout the body, and in particular the central nervous system.  Symptoms can include the inability to concentrate, memory loss and headaches.  Children can react with behavioral and learning disorders, sometimes misdiagnosed as attention deficit disorder or asthma.  One form of mold, black mold, is extremely toxic and can be deadly, especially to children with mold allergies.

Recently, a jury awarded a Wichita couple $1 million in damages because a house they bought was infested with mold the plaintiffs claimed had caused allergic reactions.  The jury ruled that the sellers were negligent in failing to disclose a leaky roof that caused the mold.  Around the nation, juries have awarded damages in the hundreds of millions of dollars for mold lawsuits, not only against previous property owners, but also construction firms, engineers, architects, and others alleged to be responsible for mold problems.  In fact, mold lawsuits have been one of the fastest growing areas of litigation in recent years. 

A homeowner’s insurance policy usually covers mold damage only if it results from something sudden and accidental, such as a burst washing machine hose.  But if the root cause was a maintenance defect or neglect, mold removal most likely would not be covered.  Due to skyrocketing losses from mold and other water-related damage claims, some homeowner’s policies in 44 states have exclusions for mold and other water-related damage in standard policies, according to the Insurance Information Institute.  Homeowners facing this change have two options:  purchase extra insurance for mold in the form of a rider or take measures to prevent the problem from occurring.  Riders can cost from $50 to $1,400 per year, depending on the insurer and location, according to a spokesman for Tillinghast, the insurance-consulting unit of Towers Perrin.

     What to Do About Mold

Whenever water gets into a house-through a leak in the roof, a burst pipe, a hard rain seeping into the basement, etc.-the affected area must be dried completely within 48 hours (72 hours tops) to prevent mold.

Mold can also result from high humidity, but this problem can usually be solved with a dehumidifier.  Yet another cause of mold is clogged air-conditioning coils.  Ask a service technician to check the air-conditioning coil to make sure the condensation drain line is free flowing and the coils are clean.

Mold may be present in your basement without your knowing.  Hold a flashlight toward the floor so that the light shines down the wall but not directly at it.  Look for shadows cast by the fuzz of mold, usually in a band on the bottom of the wall.  Also look at the tack strip under carpeting for signs of rot and behind baseboards for mold.  If you find mold anywhere, it may be advisable to contact a professional for further assessment.

According to the Environmental Protection Agency, mold that covers an area smaller than a 3-by-3-foot square can be safely removed by a homeowner.  Many people use bleach on mold, but the EPA disagrees.  Bleach can kill mold, but the dead mold will remain and could cause the same allergic reactions as live mold.  Instead of bleach, just use detergent and water.  Detergent lifts the mold away.  Then dry the area as quickly as possible.   

For larger problems, you should consult a professional environmental consultant.  Fire and water damage restoration companies will provide free or low-cost assessments, too, but keep in mind there could be a conflict of interest with these companies.

For more information about mold, consult the EPA brochure, “A Brief Guide to Mold, Moisture and Your Home.” It’s available online at www.epa.gov/mold.  For more in-depth information, see the EPA brochure “Mold Remediation in Schools and Commercial Buildings” which also applies to homeowners.

Stay Dry with Sump Pump Coverage

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Outside a violent storm slams rain against your house, the streets fill with water, the rain rushes down the down spouts, but through it all you hear the comforting sound of the sump pump hard at work. Before going to bed, you check on the condition of the basement and find it remains dry. The sump pump is purring and easily removing the water rising in the pit. You sleep soundly.

The next morning, the storm has passed but you feel something is not quite right. You rush to the basement and find it completely flooded. The pump has broken down sometime during the night. You make a frantic call to your insurance agent to report the damage and what a relief when you learn you are covered — you elected sump pump protection with your homeowner’s policy.

Basements are areas that homeowners should never overlook when insuring their homes. Often valuable personal property is stored in basements, in addition to heating, cooling and refrigeration systems.

Subject to an additional premium and underwriting, homeowners’ policies may be endorsed to cover losses, either structural or personal property, caused by water that either backs up from a sewer or drain or overflows from a sump pump or similar system, even if the loss occurs from a mechanical breakdown of the sump pump (Damage caused by loss of electricity to the sump pump is not covered.). Such damage is normally excluded from basic homeowners’ policies. A deductible often applies to any occurrence covered by the endorsement and there is usually a maximum limit of liability for any loss.

Even with the sump pump or backup endorsement, water damage from flooding or from water below the ground’s surface continues to be excluded from homeowners’ policies. Most insurance policies are clear that if a flood is the cause directly or indirectly of the sewer back up or sump pump failure, the damage is not covered by either the homeowner’s policy or the sump pump endorsement.

But you can cover some of the losses from flooding by purchasing protection from the federal government’s National Flood Insurance program. This program will cover direct physical loss caused directly or indirectly by backups through sewers or drains; discharges or overflows from a sump pump or related equipment; or seepage or leaks on or through the insured property but only IF there is a general condition of flooding in the area and the flood is the proximate cause of the sewer or drain backup, sump pump discharge or overflow, or seepage of water.

Checking with your professional insurance agent and broker can forestall problems from water damage by making certain that you understand why you may need the optional coverages – sump pump and/or flood – to protect your home.

Sump Pump Tips

-A yearly check up of your sump pump can prevent problems in an emergency. A well functioning sump pump drains water from a pit and prevents water from overflowing into your basement.

-Check to see if any debris, garbage, or build up may have worked its way into the sump since the last time it was used.

-Connect a garden hose and fill the sump with water. If the pump does not start, you may need to replace the switch or even a fuse.

-While pumps do not have filters, they do have screens or small openings through which water flows. Check this area to make sure it is not plugged or clogged.

-While sump pumps are usually a good line of defense against flooding, under isolated conditions like a power outage, you may find yourself standing in knee-deep water surrounded by thousands of dollars worth of damage. If you live in an area where power outages are common, especially during severe thunderstorms, it may be worthwhile to invest in a generator to keep your sump pump operating.

Understanding the Difference Between Claims Made & Reported and Pure Claims Made

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Under a claims-made policy, the insured is required to file claims during the policy period or during the extended reporting period (ERP), if applicable. However, there are two distinct types of claims-made policies. One is the “Claims-Made & Reported Form” and the other is the “Pure Claims-Made Form.” While the differences of the policies are subtle, not understanding the differences can have a significant impact on your coverage.

The most commonly used claims-made policy is the “Claims-Made & Reported Form.” This policy requires that not only must the claim be made during the policy period or ERP; it must also be reported during this same period. This means that the insured has a designated time frame within which claims can be filed.

The “Pure Claims-Made” Form is less prevalent. It also requires that a claim be made during the policy period or the ERP. However, the major difference between this and the “Claims-Made & Reported Form” is that under this type of policy, the insured is only required to report the claim as soon as possible. This means that the report of a claim may happen after the policy’s expiration.

If your company’s professional liability policy is a “Claims-Made & Reported Form,” then time is an important factor when a claim needs to be filed. It is your obligation to report a claim or a potential circumstance that could lead to a claim to your carrier within the policy period or the ERP. If you attempt to handle the situation internally to avoid reporting it to your carrier, the delay could negatively affect your coverage. Professional liability polices are very specific as to how and where to report a claim. Failure to comply with these provisions can negate your coverage. The “Pure Claims-Made” policy, on the other hand, only requires that the claim be reported as soon as practical, which allows for more flexibility. This means that the claim can be reported at any time in the future even after the policy expires.

In addition to the issue of claim reporting time, many “Claims-Made & Reported Form” policies have an awareness provision that allows the insured to report any circumstance that may lead to a future claim. Such notice must also be given during the policy period or ERP.

When a circumstance is reported, it’s considered to have been reported during that policy period even if it results in litigation after the policy has expired. Because each policy has a different reporting provision, it is important that you know your policy’s reporting requirement to ensure your coverage remains in effect.

Keep in mind that any extended reporting period provided by the policy only extends the period in which a claim may be reported. The wrongful act that precipitated the claim must have taken place before the policy expired.