CIC Commercial Property Practice Exam

A claims-made policy is unique in its focus on the timing of both the occurrence of an event and when a claim is reported. This type of insurance provides coverage for claims only if the claim is made during the policy period and if the event leading to the claim occurred after a specified retroactive date.

Because of this structure, a claims-made policy emphasizes the importance of timing: it ties coverage to the policy period for when a claim is reported while also being contingent upon the event happening after the retroactive date. This ensures that only claims reported while the policy is active and that originated in a time frame defined by the insurer are covered.

This dual focus on both the timing of the event and when the claim itself is reported sets claims-made policies apart from occurrence policies, which cover events that occur during the policy period regardless of when the claim is reported. Understanding this characteristic is vital for individuals managing risk and selecting appropriate insurance coverage for their needs.