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James is director of research for a pharmaceutical company. The company recently introduced a new drug to reduce the symptoms of arthritis. The company is insured under a claims-made CGL policy. The policy term is January 1, 2012 through December 31, 2012. On December 15, 2012, a patient of a physician that prescribed the drug became seriously ill after taking the prescribed dosage. On February 1, 2013, the patient filed a claim against the company for the illness. The company was given notice that the patient had become ill on December 23, 2012.
1. Explain whether the company's claims-made policy will cover the loss.
2. What is the time constraint for the injured party to file a claim and have it covered by the claims-made policy in this situation?
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