Colorado Property & Casualty Practice Exam

Question: 1 / 400

What does a claims-made policy cover?

Claims made during the policy period only

A claims-made policy is designed to cover claims that are reported within the specific period that the policy is active. This means that coverage applies only to claims made during the policy period, regardless of when the incident leading to the claim occurred, as long as the incident happened after a specified retroactive date, if applicable. This type of policy thus emphasizes the importance of reporting claims in a timely manner and hinges on the policies in force at the time the claim is made.

The structure of claims-made policies serves to protect insurance carriers from losses incurred on claims that arise from incidents occurring outside the coverage period. Insurers often prefer claims-made policies because they limit exposure by capping the timeframe within which claims must be reported, distinguishing it from occurrence-based policies that cover incidents regardless of when the claim is made, provided the incident occurred during the policy period.

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Any claims regardless of when they are made

Past claims that were denied

Claims made outside of the policy period

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