West Virginia Property and Casualty Licensing Practice Exam

Which of the following is an example of a claims made policy?

1. Homeowner's insurance

2. General liability insurance without a retroactive date

3. Automobile liability insurance

4. Property damage insurance

The correct answer is: General liability insurance without a retroactive date

A claims-made policy is one that provides coverage for claims only if the policy is in force both when the event that triggered the claim occurred and when the claim is filed. In the context of the choices provided, general liability insurance without a retroactive date exemplifies a claims-made policy because it covers claims for events as long as the policy is active when the claim is reported, irrespective of when the incident happened, provided that there was no retroactive period established. This type of policy contrasts with occurrence policies, which provide coverage for incidents occurring during the policy period regardless of when the claim is filed. Homeowner’s insurance and automobile liability insurance are typically considered occurrence policies, as they cover events that happen during the policy period without regard to when the claim is actually filed. Property damage insurance generally follows similar principles to homeowner’s and automobile liability insurance. In summary, option B is the accurate example of a claims-made insurance policy due to its specific provisions regarding the timing of coverage related to claims and the incidents that trigger them.