What is the purpose of a claims-made form?

• A. To pay for bodily injuries or property damage reported during the policy period
• B. To pay for injuries reported after the policy period ends
• C. To pay for injuries that occurred outside the policy territory
• D. To pay for property damage only

Answer: (A)

In a claims-made form, coverage is triggered by when a claim is reported, not by when the injury or damage occurred. The purpose is to pay for bodily injury or property damage that is reported during the policy period. If a claim is reported after the policy ends, coverage usually won’t apply unless tail or extended reporting coverage is purchased. The other options don’t reflect the fundamental trigger of a claims-made form—when the claim is made within the policy period.