In a claims made policy, when must the occurrence take place in relation to the policy?

A claims-made policy is designed to provide coverage for claims that are made during the policy period. However, it is essential to recognize that for a claim to be covered, the occurrence leading to that claim must take place after the retroactive date and before the policy termination date.

The retroactive date is a specific feature of claims-made policies that establishes the starting point for coverage. Any incident or occurrence that happened before this date will not be covered, even if the claim is made during the policy period. Therefore, the correct answer outlines this crucial relationship, ensuring that both the timing of the incident and the coverage period fall within specified intervals established by the policy.

This understanding is critical for policyholders as it governs when they have coverage for claims arising from specific occurrences, aligning with the intention of providing timely protection while also managing the insurer's risk.