An occurrence-based policy covers a claim if the policy was in effect when the incident occurred, regardless of when the claim is made. Which statement is true?

An occurrence-based policy covers a claim if the policy was in effect when the incident occurred, regardless of when the claim is made. Which statement is true?

• A. True
• B. False
• C. Only for certain incidents
• D. Only if riders exist

Answer: (C)

Occurrence-based coverage is triggered by the date the event happened, not by when a claim is filed. So if the incident occurs while the policy is active, related claims can be covered even if they’re made later. But this isn’t universal for every incident—the incident must occur during the policy period and fall within the policy’s scope without being excluded or limited by endorsements. In practice, some incidents will not be covered due to exclusions or specific terms in the policy, so coverage applies only for those incidents that meet the policy’s conditions. That’s why the statement is best described as true only for certain incidents.

Occurrence-based coverage is triggered by the date the event happened, not by when a claim is filed. So if the incident occurs while the policy is active, related claims can be covered even if they’re made later. But this isn’t universal for every incident—the incident must occur during the policy period and fall within the policy’s scope without being excluded or limited by endorsements. In practice, some incidents will not be covered due to exclusions or specific terms in the policy, so coverage applies only for those incidents that meet the policy’s conditions. That’s why the statement is best described as true only for certain incidents.