In a commercial general liability policy, claims for injuries that occurred thirty years ago cannot be covered if coverage is available on this basis.The claim needs to be filed during the coverage period for injuries that occur during the same period or the designated retroactive time.This limitation is the result of insurers having to pay for asbestos injuries that occurred years before knowledge of the exposure outcome was discovered.Identify this program in a commercial general liability policy.
A)Actual cash value basis
B)Claims-made basis
C)Extended replacement cost basis
D)Occurrence basis
E)Replacement cost new basis

Question

Quizplus · Accepted Answer

The correct answer is B) Claims-made basis. This is because under a claims-made basis policy, coverage is provided for claims made during the policy period, regardless of when the incident causing the claim occurred, as long as it is within the retroactive date specified. This contrasts with occurrence policies, where the policy in effect at the time of the incident is the one that provides coverage, regardless of when the claim is actually made.

In a Commercial General Liability Policy, Claims for Injuries That