Claims-Made Coverage

1. Under a CGL claims-made form, what must happen during the policy period for coverage to apply?

1. The injury must occur during the policy period
2. The claim must first be made during the policy period, and the injury must occur on or after the retroactive date
3. The lawsuit must be resolved during the policy period
4. The insured must pay the full premium in advance

2. On a claims-made CGL, the retroactive date is:

1. The date the policy expires
2. The date premiums were last paid
3. The earliest date an injury can occur and still be covered
4. The date the insured first became a business

3. A claims-made CGL is not renewed. The automatic basic extended reporting period covers claims made within how long after the policy ends for occurrences that are not reported to the insurer?

1. 60 days
2. 30 days
3. 5 years
4. One year

4. Under a claims-made CGL, if an occurrence is reported to the insurer within 60 days after the policy ends, the basic extended reporting period covers claims arising from it that are made within:

1. 90 days
2. One year
3. 5 years
4. 10 years

5. Which statement is true about the supplemental extended reporting period on a claims-made CGL?

1. It is provided automatically at no charge
2. It lasts for 60 days only
3. It covers injuries that occur after the policy ends
4. It is purchased by endorsement for an additional premium and lasts for an unlimited duration

6. A professional liability policy is written on a claims-made-and-reported basis. For coverage to apply, the claim must be:

1. Made and reported to the insurer in the policy period or an ERP
2. Based on an error that happened during the policy period, whenever reported
3. Made within five years of the error, even if never reported to the insurer
4. Reported to the insurer only after the policy period has expired

7. A customer is injured in 2023 while a CGL occurrence policy is in force, and sues in 2026 after that policy was canceled. Which policy responds?

1. The policy in force in 2026, because the suit was filed during that term
2. No policy responds, because the 2023 policy was canceled before the suit
3. Only a supplemental extended reporting period endorsement
4. The 2023 policy, since the injury occurred while it was in force

8. At renewal, a claims-made liability policy is reissued with the retroactive date moved forward two years. What is the effect?

1. Injury occurring in the two-year gap is no longer covered
2. Coverage is unchanged, since the retroactive date only affects premium
3. Injury before the new date is covered but at half the limits
4. The policy automatically converts to an occurrence form

9. On a claims-made CGL, the first named insured wants to buy the supplemental extended reporting period. It must be requested in writing within:

1. 30 days before the policy period ends
2. 60 days after the policy period has ended
3. One year after the policy period ends
4. 90 days after the claim is made

10. Which event gives the insured the automatic basic extended reporting period on a claims-made CGL?

1. A normal renewal that keeps the same retroactive date
2. The insured misses a claim reporting deadline during the term
3. The insured asks for higher limits at the renewal date
4. The insurer replaces the policy with an occurrence form

11. Why does the premium for a claims-made policy usually step up over the first several renewals?

1. More past injury becomes reportable under the fixed retro date
2. The retroactive date moves forward every year at renewal
3. The extended reporting period is added to the premium automatically
4. Claims-made forms always cost more than occurrence forms in year one