Manitoba Fundamentals of Insurance Exam A Practice 2025 - Free Insurance Practice Questions and Study Guide

Claims-made coverage is a type of insurance policy that is specifically designed to provide protection for claims that are made during the policy period, regardless of when the incident occurred, as long as it falls within the coverage parameters established by the policy. This means that if a claim is reported while the policy is active, and it pertains to an incident that happened during the time frame the policy covers, it will be eligible for coverage.

In contrast to other types of coverage, such as occurrence policies, claims-made coverage emphasizes the timing of the claim rather than the timing of the incident itself, making it crucial for insured individuals or businesses to understand when coverage is applicable. This nuanced approach allows policyholders to manage liabilities effectively by ensuring they have coverage in place during the periods in which they anticipate claims may arise.

The other options describe aspects that are not inherent to claims-made coverage. Specifically, coverage only for incidents during the policy period and coverage for claims made after the policy has expired do not align with the basic principles of claims-made coverage. Additionally, the notion of unlimited coverage for any claim is misleading, as most insurance policies have limits and conditions that apply.