Question

(Claims/Occurrence) is filed during the policy period but the policy has to be renewed indefinitely so you will need to buy a tail at retirement.

a) Claims
b) Occurrence

Answer 1

In insurance, a claim is filed during the policy period and a tail may need to be purchased at retirement if the policy is renewed indefinitely.

Step-by-step explanation:

The student is asking about whether a claim or occurrence is filed during the policy period and if a tail needs to be purchased at retirement if the policy is renewed indefinitely.

In the context of insurance, a claim is a request for compensation for a loss covered by the insurance policy. A policy period refers to the duration of the insurance policy, during which claims can be filed. An occurrence refers to an event that causes injury or damage and triggers coverage under an insurance policy.

If a policy is renewed indefinitely, it means that it continues to be in effect without a specified end date. When it comes to professional liability insurance, such as malpractice insurance for doctors, it is common for practitioners to purchase a tail (also known as an extended reporting endorsement) at retirement. This tail provides additional coverage for claims made after the policy period ends.