Texas All Lines Adjuster Practice Test

What type of policy is typically limited to claims arising during the policy period?

1. Comprehensive Coverage Policy

2. Claims-Made Form Policy

3. Occurrence Policy

4. General Liability Policy

The correct answer is: Claims-Made Form Policy

A Claims-Made Form Policy is designed specifically to cover claims that are made against the insured during the policy period, regardless of when the incident that led to the claim occurred, as long as the incident is tied to the coverage timeframe specified in the policy. This type of policy is particularly common in professional liability and malpractice insurance, where claims may arise long after the service was provided. The critical feature of a Claims-Made Form is its emphasis on the timing of the claim being reported rather than when the event occurred. This means if a claim is made after the policy expires, even if the event that caused the claim occurred while the policy was active, coverage would generally not apply unless a tail coverage or extended reporting period option was purchased. The other options describe different coverage characteristics or do not specifically limit claims to the policy period in the same manner. For example, an Occurrence Policy covers events that occur during the policy period, regardless of when the claim is filed. This distinction is essential for understanding the various insurance coverages available and their implications regarding claims and liability.