South Carolina Adjuster Licensing Practice Exam

The claims-made form is designed specifically to cover losses that are reported during the policy period. This type of insurance coverage is commonly used in professional liability policies because it allows the insured to report claims as they arise, as long as the incident leading to the claim occurred after a specified retroactive date and before the policy expired.

This form ensures that the insurer is only responsible for claims that are reported while the policy is active, enabling the insurer to manage their risk more effectively. The distinction lies in its emphasis on when claims are made rather than when the event causing the claims occurred, which is a critical feature that differentiates it from other types of coverage forms, such as the occurrence form, which provides coverage for incidents that occur during the policy period regardless of when the claim is made.

Understanding the characteristics of the claims-made form is essential for adjusters as it underscores the importance of reporting claims in a timely manner for coverage to be valid, emphasizing the need for close monitoring of policy dates and incidents.