Alabama Insurance Adjuster Practice Exam

What CGL policy would cover Ryan's claim filed regarding his knee injury that is claimed to be linked to the exercise bike incident?

1. A claims-made policy from Jan 1, 2003 - Jan 1, 2004

2. A claims-made policy from Jan 31, 2009 - Jan 31, 2011

3. A occurrence policy from Jan 1, 2004 - Jan 1, 2005

4. A comprehensive policy from Jan 31, 2011 onwards

The correct answer is: A claims-made policy from Jan 31, 2009 - Jan 31, 2011

To determine the appropriate coverage for Ryan's claim regarding his knee injury, it’s important to understand the differences between claims-made policies and occurrence policies. Claims-made policies provide coverage for claims that are made during the policy period, meaning the injury must have occurred after the policy was first issued and the claim must be filed while the policy is still active. In this context, the relevant time frame for coverage under a claims-made policy is crucial. The policy that runs from January 31, 2009, to January 31, 2011, is significant if the injury occurred during that time period or if the incident leading to the claim occurred after the policy began and the claim was made while the coverage was still active. In contrast, occurrence policies provide coverage for incidents that happen during the policy period, regardless of when the claim is filed, as long as the event occurs while the policy is in force. However, the key is also to ensure that the event is linked to the claims process during that specified period. Given that Ryan's injury is linked to a specific incident involving an exercise bike, if that incident occurred between January 31, 2009, and January 31, 2011, the claims-made policy in that time frame is