Unit 7 Quiz. Is there a typo?
by Addison Dubay - From my understanding, as the question below is worded, the 2003 claims-made policy would apply. Unfortunately, that is not one of the answers. Am I missing something? Is there a typo in the question or answers? Is the question missing pertinent info that would make one of the answers obvious?
Assume, for each of the following, the insured had calendar year policies: occurrence policies in 2000 and 2001, claims-made policies in 2002 and 2003, both stating retroactive date 1-1-02. The insured retired from business and did not renew or replace the 2003 policy. If there is a BI or PD from a covered occurrence, which policy or policies (if any) apply for; "Claimant injured in 2002. Claim was first made against insured on 7-1-03?"
Select one:
A. All of the policies would apply
B. The occurrence policy would still apply and the 2002 claims-made policy would also apply (with no retroactive date, it applies to claims for all prior occurrences if first made during its term)
C. The 2002 claims-made policy applies (occurrence after retroactive date, claim fist made during its term).
D. 2001 occurrence policy applies (occurrence form applies to BI/PD which occurs during the policy term). The 2002 claims-made policy does not apply because the occurrence happened before retroactive date.
Re: Unit 7 Quiz. Is there a typo?
by Jan Bradburn- - Addison,
Claims-Made coverage applies when these two conditions are met:
- The policy is in force when the bodily injury or property damage occurs (just like Occurrence coverage) AND
- The policy or a renewal of the policy is still in force when the claim is made
Coverage is available because the Claims-Made form was renewed in 2003, but once you verify that coverage is available, you go to the policy that was in force when the injury or accident occurred.
Jan
Re: Unit 7 Quiz. Is there a typo?
by Addison Dubay - Thank you!