Casualty & LiabilityQuestion 80 of 215
A CLAIMS-MADE CGL policy contains a retroactive date of January 1, 2022, and is in force from January 1, 2024, to January 1, 2025. The insured then non-renews and does NOT purchase an extended reporting period ("tail"). When is a claim covered?
a.When the bodily injury occurred between 2022 and 2024, regardless of when the claim is reported
b.When the bodily injury occurred on or after January 1, 2022, AND the claim is first made and reported during the 2024 policy period
c.When the claim is made within 6 years of the policy ending, under the basic ERP
d.Only if the injury occurred during 2024
Explanation
A claims-made trigger requires TWO conditions: (1) the underlying injury occurred on or after the RETROACTIVE DATE (here, Jan. 1, 2022), and (2) the claim is first MADE against the insured AND reported to the insurer during the policy period (or during an ERP, if purchased). Without an ERP, a claim reported after Jan. 1, 2025 is not covered. A basic 5-year supplemental ERP is available for an additional premium, but the insured did not buy it.
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