Texas Property and Casualty License Practice Exam 2026 – All-in-One Guide to Exam Success!

In a claims-made policy, coverage is specifically tied to when the claim is made, not when the incident occurred. Therefore, claims that arise from accidents occurring after the policy expires are excluded from coverage. This means if a policyholder experiences an incident that leads to a claim after the policy term has ended, that claim will not be covered, regardless of when the incident happened.

This nature of claims-made policies emphasizes the importance of having coverage in place during the period when incidents occur. It's also why prolonged coverage is often necessary for professionals and businesses to protect against claims that may arise long after services have been rendered.

On the other hand, claims made within the policy period would be covered, as would incidents related to bodily injury or property damage, provided they are reported while the policy is active. Thus, the focus on the timing of the claim relative to the policy's expiration is key to understanding what is included and excluded under such policies.