Which of the Following Is (Are)covered Under a Claims-Made Policy

question 12

Multiple Choice

Which of the following is (are) covered under a claims-made policy?
I.Claims arising out of occurrences which take place during the policy period,regardless of when the claim is made
II.Claims first reported during the policy period,provided the event occurred after any retroactive date stated in the policy

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Opportunity Cost

The cost of foregoing the next best alternative when making a decision or choosing to pursue a particular action.

Incentive

An incentive is a motivational factor or reward that encourages people to perform an action or adopt a behavior.

Room And Board

A combination of housing (room) and meals (board) typically provided as part of compensation or in a collegiate setting.

Scarce Resources

Natural, human, and man-made inputs that have limited availability and are used for the production of goods and services.