Under a claims-made policy, which date determines coverage for a claim?

Under a claims-made policy, which date determines coverage for a claim?

• A. The date the claim is made
• B. The retroactive date
• C. The policy expiration date
• D. The date the premium is paid

Answer: (A)

In a claims-made policy, what matters for coverage is when the claim is reported. The insurer covers claims that are made during the policy period, regardless of when the event occurred, provided the incident meets any retroactive date requirements. The retroactive date sets the earliest date from which incidents can occur and still be covered if the claim is reported during the policy period; if a claim is made during the period but the incident happened before that date, it may not be covered. The policy expiration date simply marks the end of the period during which claims must be made to obtain coverage, and payments timing has no bearing on whether a claim is covered.

In a claims-made policy, what matters for coverage is when the claim is reported. The insurer covers claims that are made during the policy period, regardless of when the event occurred, provided the incident meets any retroactive date requirements. The retroactive date sets the earliest date from which incidents can occur and still be covered if the claim is reported during the policy period; if a claim is made during the period but the incident happened before that date, it may not be covered. The policy expiration date simply marks the end of the period during which claims must be made to obtain coverage, and payments timing has no bearing on whether a claim is covered.