Tom Helberg had secured a "claims-made" legal malpractice policy from National Union for the year ending December 21, 1991. The policy covered "any claim . . . first made against the insured and reported to the Company during the policy period." The policy also provided such coverage during an "extended reporting period purchased in accordance with Condition III."

Condition III was titled, "III Extended Reporting Endorsement" and provided: "In case of cancellation or nonrenewal by either the insured or the company . . ." the insured had the right, upon payment of an additional premium within 30 days of the termination of the policy period, to have issued an endorsement which provided an unlimited extended reporting period for reporting claims.

The insured in this case renewed the original policy by the payment of the premium due in December 1991.

The claim, which is the basis for this action, was reported by him to the company on January 21, 1992.

National Union contended that the insured knew that a claim would be made on October 21, 1991, and under the policy, he was required to notify National Union at that time. Instead, he waited for almost six weeks before notice was given.

The only question before the court was whether the insured's knowledge of the claim in October 1991, but not reported by him until six weeks later, prevented him from securing coverage under the policy which had been renewed in December.

The trial court believed the insured's delay forfeited his rights under the policy, and the insured appealed.

The higher court found that the policy was ambiguous since it dealt with cancellation and nonrenewal but made no mention of renewal. Since the original policy was a renewal and not a "nonrenewal" or "cancellation," the company could not rely upon that provision to avoid liability.

The judgment of the trial court finding the company was not liable was reversed, and the action was reversed and remanded for further proceedings consistent with this opinion.

Helberg, Appellant v. National Union Fire Insurance Company--No. L-91-103--Court of Appeals of Ohio, Lucas County--April 28, 1995--657 North Eastern Reporter 2d 832.