Other Than Life (OTL) Practice Exam 2026 – All-In-One Guide to Exam Success!

A claims-made policy operates by covering events that occur during the policy period, provided that the claim is made within that same period. This means that for a claim to be valid under a claims-made policy, the incident that triggered the claim must have happened while the insurance policy was in effect, and the claim must be reported while the policy is still active. This framework is crucial for professionals in fields like medicine or law, where potentially years could pass between an incident and the filing of a claim.

Other options refer to different coverage mechanisms or conditions that typically do not align with how a claims-made policy functions. For instance, coverage for claims made after the policy expires, lifetime coverage, or specific reporting requirements within a limited time frame does not accurately describe the essential operation of a claims-made policy. Instead, the focus on the timing of both the incident and the claim in option A accurately captures the essence of how these policies are structured and executed.