Prior Knowledge may refer to the knowledge an individual or entity had of a potential event or loss before the event occurred. In the context of Directors and Officers (D&O) insurance, prior knowledge refers to knowledge an individual had of an event that occurred prior to the effective date of the insurance policy. This knowledge can be used by the insurer to deny coverage or limit liability for a claim.
Prior Knowledge in More Detail
Prior knowledge can be established in a variety of ways, such as through interviews with officers and directors, publicly available information, or other sources. It is important to note that prior knowledge is not the same as prior acts, which are events or actions that occurred prior to the policy’s effective date.
When determining prior knowledge, insurers typically consider whether the individual or entity had knowledge of a potential event or loss prior to the policy’s effective date. If the individual or entity had knowledge of a potential event or loss, the insurer may be able to deny coverage or limit liability for the claim.
In summary, prior knowledge may refer to knowledge an individual or entity had of a potential event or loss prior to the effective date of a D&O insurance policy. This knowledge can be used by the insurer to deny coverage or limit liability for a claim.
