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nose coverageJoe Segen2016-12-27T09:54:26+00:00
Definition A popular term for a supplement to a claims-made malpractice insurance policy which may be purchased from a new carrier when a physician changes carriers and had claims-made coverage with a previous carrier. Nose coverage (NC) covers incidents (read, that might result in a lawsuit for alleged malpractice) which occurred before the beginning of the new insurance relationship but for which no claim has been made. In NC, the insured’s liability is assumed by a prior malpractice insurance carrier, usually until the physician has a new policy.
Comment NC is an alternative to an extended reporting endorsement, aka tail coverage, which is purchased from the original carrier when a change is made; the NC period is usually brief and may be extended as a courtesy by the insurance carrier when a physician moves to another state.
Synonym Prior acts coverage