Which of the following arises in policies in which the insured event occurs during a coverage period but a claim is not filed or reported until many years later?

Question

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Long-tail losses arise in policies where the effects of the insured event are not immediately apparent and a claim may not be filed or reported until years later. This can lead to challenges for insurers in assessing the total cost of claims and setting reserve amounts. Examples of policies with long-tail losses include liability insurance for products, environmental damages, and professional malpractice.

Which of the Following Arises in Policies in Which the Insured