My insured has claims-made pollution coverage for underground storage tanks. A leak in one of the tanks occurred in April, 1999. However, my insured paid for the loss himself and did not report it to the insurance company (Company A) at the time. The policy stated that claims had to be reported within six months of a loss.

Company A's policy expired in December of 1999, at which time a new carrier (Company B) wrote coverage. The retrospective coverage date on the new policy was December 1998. My insured listed the loss on his application to Company B.

When I placed the insurance, I told the business owner he should have reported this loss. By the time he did so, Company B's policy was in force.