Texas All Lines Adjuster Practice Test

Which policy is triggered by an occurrence during its term even if the claim is made later?

1. General Liability Policy

2. Occurrence Form Policy

3. Claims Made Policy

4. Comprehensive Coverage Policy

The correct answer is: Occurrence Form Policy

The correct answer is the Occurrence Form Policy. This type of policy is designed to provide coverage for incidents that occur during the policy term, regardless of when the claim is actually made. This means that if an event that leads to a loss or liability happens while the policy is active, the policy will still cover the claim even if it is reported or filed after the policy has expired. In contrast, a General Liability Policy typically refers broadly to policies that provide coverage for a range of liabilities but does not specifically denote whether it is occurrence-based or claims-made. A Claims Made Policy, on the other hand, only provides coverage for claims that are filed during the policy period, regardless of when the occurrence took place. Finally, Comprehensive Coverage typically refers to a type of auto insurance that covers damage to a vehicle not involving collisions, making it unrelated to the context of liability coverage and occurrence versus claims-made dynamics. Therefore, the Occurrence Form Policy is uniquely poised to address situations where the timing of the occurrence and the filing of the claim may not align.