Which statement best describes how a claims-made form applies to bodily injury or property damage (BI/PD)?

• A. It applies only to BI or PD that occurs on or after the retroactive date and for which the claim is received or recorded during the policy period.
• B. It applies to BI or PD that occurs before the retroactive date and is reported during the policy period.
• C. It applies to BI or PD regardless of when it occurs or is reported.
• D. It applies only to property damage, not bodily injury.

Answer: (A)

In a claims-made form, coverage for bodily injury and property damage hinges on two timing rules: when the event occurs and when a claim is made and reported. The retroactive date marks the earliest date from which an event can occur and still be covered. Events that happen before this date aren’t covered, even if you report them during the policy period. At the same time, the claim must be received or recorded during the policy period. So the best description is that BI/PD coverage applies to injuries or damages that occur on or after the retroactive date and for which the claim is received or recorded during the policy period. This captures both the post-retroactive-date condition and the required timing of notice. The other options either allow coverage for pre-retroactive events, ignore the reporting requirement, or limit coverage to property damage only, which isn’t accurate.