Under an occurrence policy, injuries or damages that occur during the policy term are paid under which policy year?

Under an occurrence policy, injuries or damages that occur during the policy term are paid under which policy year?

• A. Current policy year
• B. Prior policy year
• C. Future policy year
• D. The year the claim is filed

Answer: (A)

Coverage in an occurrence policy is triggered by the time the incident happened, not by when a claim is filed. If injuries or damages occur during the policy term, they are paid under the policy year in which the event occurred—the current policy year. The claim may come later or even after the policy ends, but the coverage for that incident is tied to the year the event happened, not to the filing date. This is different from a claims-made policy, where coverage depends on when the claim is made.

Coverage in an occurrence policy is triggered by the time the incident happened, not by when a claim is filed. If injuries or damages occur during the policy term, they are paid under the policy year in which the event occurred—the current policy year. The claim may come later or even after the policy ends, but the coverage for that incident is tied to the year the event happened, not to the filing date. This is different from a claims-made policy, where coverage depends on when the claim is made.