Common use of Notice of Circumstance Clause in Contracts

Notice of Circumstance. If, during the Policy Period or the Extended Reporting Period, if applicable, the Insureds first become aware of a Wrongful Act that occurred during the Policy Period which may reasonably give rise to a future Claim (a ''circumstance'') and during such period give written notice to the Insurer of: 1. the names of any potential claimants and a description of the Wrongful Act which forms the basis of their potential Claim; 2. the identity of the specific Insureds allegedly responsible for such specific Wrongful Act; 3. the consequences which have resulted or may result from such specific Wrongful Act; 4. the nature of the potential monetary damages or non-monetary relief which may be sought in consequence of such specific Wrongful Act; and, 5. the circumstances by which Insureds first became aware of such specific Wrongful Act; then any Claim otherwise covered pursuant to a Coverage Part which is subsequently made and which arises out of such circumstance shall be deemed to have been first made and reported to the Insurer by the Insureds at the time such written notice was received by the Insurer. No coverage is provided for fees and expenses incurred prior to the time such notice results in a Claim.