How does the graduated deductible under the E&O coverage for claims reported after September 1, 2009 work?
Under the graduated deductible, the first claim resulting in a settlement paid under the policy on behalf of an individual registrant will remain unchanged at $2,500. Each additional claim resulting in a settlement paid under the policy on behalf of the same registrant will result in an additional surcharge of $2,500. This means the deductible for a second claim will total $5,000, a third claim will total $7,500. There is no maximum deductible surcharge. The insurer will establish a claims paid history for each registrant. When a claim is due to be settled, the insurer will review the total number of settlements paid under the policy on behalf of the same registrant during the previous three year period. If, for example, a claim is due to be settled October 31, 2009, the insurer will review the registrant?s claim history back to September 1, 2009 – the implementation date of the graduated deductible to the insurance program. If a claim is due to be settled on January 10, 2013, the insu
