Question

Claims made coverage requires that the loss be reported during ____. A. The policy period

B. The discovery period
C. The extended reporting period
D. The occurrence period

Answer 1

Claims-made coverage requires that the loss be reported during the policy period.

Step-by-step explanation:

The correct answer is A. The policy period. Under claims-made coverage, the insured is only covered for claims reported during the policy period. This distinctive feature requires both the occurrence of the loss and the reporting of the claim to happen within the defined time frame specified in the policy. Unlike occurrence-based policies that focus on when the covered event happened, claims-made policies emphasize the importance of reporting during the active policy period. This temporal requirement helps insurers manage and assess risks more effectively, ensuring that claims are reported in a timely manner and providing clarity regarding the coverage timeline for both the insured and the insurer.