Is a Sealed Lawsuit a “Claim”? Insurance Coverage Issues for Qui Tam Actions

The National Law Review

A critical coverage issue under “claims made” liability insurance policies-which typically cover only claims made against a policyholder and noticed to an insurance carrier during the applicable policy period ( or shortly thereafter)-is determining when a matter becomes a “claim” and when that claim was first “made.” While these may sound like straightforward determinations, they can be contentious in certain contexts. One such context is qui tam actions. Policyholders who face possible qui tam liability should be aware that the unique procedural rules applied to qui tam actions are leading to a growing number of coverage disputes between qui tam defendants and their insurers.

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