# Extract Insurance Policy Terms Acquisition Due Diligence > Agents conducting an insurance coverage analysis memo for acquisition due diligence extract primary policy terms and then test for structural coverage gaps, endorsements, open-claim tensions, transition risk, and post-closing continuity issues. - Skill: `finchipaiorg/extract-insurance-policy-terms-acquisition-due-diligence` (Agent Skill) - Install (CLI): `npx skillmds@latest add finchipaiorg/extract-insurance-policy-terms-acquisition-due-diligence` - Raw SKILL.md: https://api.skillmd.com/api/skills/finchipaiorg/extract-insurance-policy-terms-acquisition-due-diligence/raw - Safety review: pending - Works with: Claude Code, Claude.ai, OpenAI Codex - Category: Coding & Dev Tools - Author: FinchipAIOrg (https://skillmd.com/u/finchipaiorg) - Updated: 2026-09-22 - Page: https://skillmd.com/skills/finchipaiorg/extract-insurance-policy-terms-acquisition-due-diligence --- # Skill: Insurance Policy Key Term Extraction — Coverage Analysis Memorandum for Acquisition Due Diligence ## 1. Subject-matter triage - Identify each policy form in the portfolio and classify it by line, insurer, insured entity, policy year, and claims-made or occurrence structure. - Separate the analysis into (i) current coverage terms, (ii) endorsement-driven deviations, (iii) open claims and known exposures, and (iv) closing/transition continuity issues. - If only one policy or one insured entity is in scope, say so explicitly before analyzing gaps; do not assume portfolio-wide issues apply everywhere. - Where multiple policies, claim matters, or policy periods exist, enumerate them first and then analyze each item separately. ## 2. Failure modes the skill is correcting - A policy term is extracted but its practical effect is not tied to the target’s actual exposure or operating facts. - An endorsement is noticed, but the memo does not say whether it broadens, narrows, conditions, or suspends coverage. - A claim-handling clause is identified without connecting it to any open matter that creates settlement pressure or reporting risk. - A policy-year change is treated as routine even though retroactive dates, continuity terms, or tail rights may create a reporting gap. - A transition-period operational change, including vacancy or reduced safeguards, is not tested against policy conditions. - The memo lists coverage features but does not convert them into risk-rated findings with concrete next steps. ## 3. Legal frameworks / domain conventions that apply - Read each policy as a contract: anchor the analysis in the insuring agreement, exclusions, conditions, endorsements, and priority-of-coverage language. - Treat claims-made forms differently from occurrence forms: for claims-made coverage, reporting timing, retroactive dates, continuity terms, and any extended reporting period are central. - For umbrella and excess forms, test whether the layer follows form or departs from underlying coverage through exclusions, sublimits, or conditions. - For liability and property forms, test exclusions and carve-outs as written; if a carve-out is absent, do not infer one. - For open claims, connect the claim posture to settlement-consent, defense-control, notice, cooperation, allocation, and consent-to-settle provisions. - For acquisition diligence, evaluate continuity at closing as a post-closing operational and transactional risk, not only as a policy-interpretation issue. ## 4. Analytical scaffolds 1. For each policy, extract: - insurer, named insured, additional insured language if any - policy type and form number if available - policy period - limits, sublimits, retentions, deductibles, and self-insured components - insuring agreements - key exclusions - conditions, notice requirements, and defense/settlement provisions - endorsements that alter scope, timing, occupancy, safeguards, professional services, pollution, or contractual liability treatment 2. Test the following recurring issues wherever the source documents make them relevant: - umbrella contractual-liability gap: determine whether contractual liability is excluded, narrowed, or merely co-extensive with underlying coverage; explain any practical cap on indemnity protection - pollution exclusion: identify the exclusion and any fire-related or other express carve-out; flag the absence of a carve-out when environmental loss is plausible - environmental remediation coverage: determine whether cleanup, investigation, monitoring, or compliance costs are affirmatively covered or excluded - protective safeguards endorsement: identify required systems or practices, whether coverage is suspended or reduced for noncompliance, and whether current operations match the condition - settlement-consent / hammer clause: identify the consent mechanism and explain how it affects claim resolution strategy and excess-cost exposure - professional-services exclusion: test whether mixed products/services/advice allegations may fall out of umbrella protection - vacancy clause: determine whether a vacancy trigger reduces, suspends, or conditions property coverage during transitional occupancy changes - retroactive-date continuity: compare claims-made dates and continuity terms across successive forms to identify pre-change conduct not clearly covered - tail coverage: determine whether an extended reporting period or similar tail is needed after replacement or nonrenewal to preserve reporting rights 3. For every issue, complete the analysis in one pass: - identify the triggering policy text and the affected exposure - tie the issue to another clause, endorsement, claim, schedule, or policy in the source set - state the downstream consequence for the deal, operations, claims handling, or post-closing indemnity economics - assign a severity level from the scale used in the memo 4. When the materials include open claims, treat each claim as a separate row of analysis: - claim description or matter type - related policy year(s) - notice/reporting status if shown - defense and settlement-control issues - coverage tension or reservation issues if shown - transaction impact and recommended follow-up 5. If the source set does not contain enough information to confirm a point, say what is missing and what assumption cannot safely be made. 6. Use controlling authority only as needed for legal propositions stated in the memo; do not state a coverage conclusion without tying it to the governing policy language, contract doctrine, or other identified authority. ## 5. Vertical / structural / temporal relationships - Separate vertical layers of coverage: primary, excess, umbrella, and any specialty policies. - Track temporal sequence: prior year, current year, renewal year, closing date, and post-closing period. - Compare policy transitions across time for retroactive dates, reporting obligations, occupancy status, safeguard compliance, and unresolved claims. - Where one policy depends on another, explain the dependency explicitly rather than describing the forms in isolation. - If a policy condition can be defeated by a transition event, flag the timing issue and identify whether the problem arises before or after closing. ## 6. Output structure conventions - Write a coverage analysis memo organized by policy type, then by issue, then by claim or exposure where relevant. - Start with a short executive summary that states the overall risk posture and the most material coverage gaps. - Include a concise policy inventory table capturing the core terms for each policy. - Define a uniform ordinal severity scale once near the top and apply it consistently to each issue. - For each issue, provide: - severity - policy or policies implicated - short issue statement - supporting policy language or document reference - practical consequence - recommended action - Include a separate section for open claims and another for transition / post-closing continuity risks. - End with a Recommended Actions block that assigns each action to a role or owner and ties it to a transaction milestone, renewal date, reporting deadline, or other timing anchor visible from the materials. - Keep the memo action-oriented: findings should identify the gap, its significance, and the next step, not merely describe the policy language.