Which policy covers losses reported during the policy period rather than when they occurred?

Question

Options

• Acase reserve
• Bcase average
• Cclaims-made
• Dreported claim

• A
  15% (6)
• B
  5% (2)
• C
  73% (29)
• D
  8% (3)

Explanation

Claims-made (C) is correct because this policy type triggers coverage based on when the claim is reported to the insurer, regardless of when the underlying loss actually occurred - so only claims reported within the active policy period are covered.

Why the distractors are wrong:

• A. Case reserve - a reserve is an accounting estimate of future claim costs, not a policy type at all.
• B. Case average - not a standard insurance policy concept; this is a distractor with no meaningful definition in this context.
• D. Reported claim - describes a claim status or event, not a policy coverage trigger; it's a term used within claims processing, not a policy form.

Memory tip: Think "claims-made = claim must be made (reported) during the policy." Contrast this with an occurrence policy, which covers events that occur during the policy period regardless of when reported - if you remember one, you remember both.

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