The commercial general liability form (CG 00 01), its coverages, exclusions and the occurrence vs. claims-made triggers are covered in the national Commercial General Liability guide. This guide covers New York's required liability policy provisions (Insurance Law 3420(a)) and its claims-made rules (Regulation 121, 11 NYCRR 73).

Required provisions in New York liability policies (Ins. Law 3420)

• Insolvency of the insured: the insured's bankruptcy or insolvency doesn't release the insurer (3420(a)(1)).
• Direct action: if a judgment against the insured goes unpaid for 30 days, the injured person can sue the insurer directly, up to the policy limit (3420(a)(2), (b)).
• Notice to an agent: notice to any licensed agent of the insurer in New York counts as notice to the insurer (3420(a)(3)).
• Late notice: failing to give timely notice doesn't defeat a claim unless the insurer was prejudiced (3420(a)(5)). Claims-made reporting rules are separate.
• Disclaimers: for death or bodily injury, the insurer gives written notice of a disclaimer or denial as soon as reasonably possible to the insured and the claimant (3420(d)(2)).

Claims-made policies (Regulation 121)

• Allowed on a claims-made basis: coverages such as products, completed operations, professional liability, directors and officers, errors and omissions, employment practices and pollution. Not allowed: motor vehicle liability and any personal lines coverage subject to section 3425 (11 NYCRR 73.2).
• Retroactive date: can't be changed during the claims-made relationship or any extended reporting period (73.3(b)).
• Automatic extended reporting period: at least 60 days, or 90 days for public entity liability policies (73.3(d)).
• Optional extended reporting period: the insurer must offer a three-year extended reporting period, or one year for D&O (other than not-for-profits), fiduciary, EPL, pollution and certain other coverages (73.3(f), (g)).
• Notice of the option: the insurer gives written notice within 30 days after termination. The insured has at least 60 days from termination, or 30 days from the notice if later, to accept (73.3(e)).

Common exam traps

• Direct action after 30 days of an unpaid judgment.
• Late notice defeats a claim only if the insurer was prejudiced.
• Claims-made isn't allowed for auto liability or section 3425 personal lines coverage.
• Extended reporting: 60 days automatic (90 for public entities), and a 3-year option offered.