Question

The question, "Did the Loss Occur During the Policy Period?" is part of the framework for coverage analysis. Which one of the following statements is true with respect to policy periods?

1) Policy periods determine the duration of coverage under an insurance policy.
2) Policy periods have no impact on coverage analysis.
3) Policy periods are only relevant for certain types of insurance policies.
4) Policy periods are determined by the insured party.

Answer 1

The statement that is true with respect to policy periods is that policy periods determine the duration of coverage under an insurance policy.

Step-by-step explanation:

The statement that is true with respect to policy periods is:

1. Policy periods determine the duration of coverage under an insurance policy.

Policy periods play a crucial role in insurance policies as they specify the length of time for which the policy is valid. Insurance coverage applies only during the policy period and any losses that occur outside this period may not be covered.