1. Helen is director of research for a pharmaceutical company. The company recently introduced a new drug to reduce the symptoms of arthritis. The com- pany is insured under a claims-made CGL policy. The policy term was January 1, 2015, through December 31, 2015. On December 15, 2015, a patient of a physician that prescribed the drug became seriously ill after taking the prescribed dos- age. On February 1, 2016, the patient filed a claim against the company for the illness. Helen had no prior notice that the patient had become ill. Explain whether the companys claims-made policy will cover the loss.

2. Samuel owns several retail stores. The employees are insured for employee theft under a commercial crime coverage form (loss-sustained form) with an insurancelimit of $10,000. Samuel discovered that Vera, a longtime accountant, had embezzled $5,000 during the current policy period to pay the gambling debts of her son, who had been threatened with bodily harm. What is the liability of the insurer, if any, for the preceding loss? Explain your answer.