Ace the New York 2025 Property & Casualty Exam – Unleash Your Insurance Superpower!

"Claims-made" coverage is structured such that a claim must be made during the policy period for it to be considered valid, regardless of when the incident that prompted the claim occurred. This type of coverage is often associated with professional liability insurance, where it is crucial to have coverage in place for claims that arise from services rendered in the past, as long as those claims are reported while the policy is active.

This is significant because it emphasizes the timing of when a claim is made. For example, an incident might occur years before a claim is filed, but if that claim is made while the claims-made policy is in effect, it may be covered. Conversely, if a claim is made after the policy has expired, it would not be covered, even if the incident was within the coverage period.

In this context, the requirements of notifying the insurer about an incident or reporting the incident to law enforcement are not integral to the claims-made coverage itself. The cornerstone of such policies is the requirement that claims must be submitted during the active policy period, showcasing the primary focus on the reporting of claims rather than solely the occurrences of incidents themselves.