Florida Insurance Licensing Practice Exam 2025 - Free Insurance Licensing Practice Questions and Study Guide

Claims-made coverage is a specific type of insurance policy that is crucial for understanding the timing of claims in relation to the policy period. This coverage responds to claims made during the policy period, regardless of when the incident that caused the claim actually happened. This is particularly relevant in fields like professional liability or malpractice insurance, where an event may cause damage or injury at one time but a claim related to that event might be filed years later.

For instance, if a professional provides a service that leads to a claim filed two years after the service was provided, claims-made coverage would respond to that claim as long as the policy was in effect when the claim was made. This is essential for professionals who might face claims long after the services were delivered, as it allows them to be covered as long as they have the right policy in place at the time the claim is presented.

In contrast, the other options describe different concepts. Some relate to insurance policies that cover only certain events or circumstances, such as events occurring after a policy purchase or claims that must align with specific times, while others inaccurately suggest that claims reporting requirements can be completely eliminated. Understanding claims-made coverage is critical for those in professions that may face delayed claims.