Under the Claims-Made form, what triggers coverage?

The Claims-Made form is structured in a way that provides coverage for claims only if they are made during the policy period and arise from incidents that occurred after a specific retroactive date. The correct choice highlights that in order for coverage to be triggered, the bodily injury (BI) or property damage (PD) must occur after that retroactive date. This means that incidents leading to claims must have taken place after the established retroactive limit to be eligible for coverage.

This mechanism is essential to understand for adjusting claims because it places boundaries on the insurer's exposure based on when the covered events occurred. It is designed to enable insurers to limit their liability and provide clarity regarding the period during which incidents need to happen for claims to be honored.

In contrast, claims made during the policy period need to be based on incidents that fit within the stated parameters. Options that refer to claims made after policy expiration or those regarding prior event claims do not align with the fundamental principles of a Claims-Made form, which are focused on the timing of the events in relation to the retroactive date and policy period.