Louisiana P&C Adjuster Practice Exam

Which type of policy would cover Ryan's claim regarding his knee injury linked to an earlier incident?

1. Occurrence policy

2. Claims-Made policy

3. Exclusionary policy

4. General Liability policy

The correct answer is: Occurrence policy

An occurrence policy is designed to provide coverage for incidents that occur during the policy period, regardless of when the claim is actually made. This means that if Ryan's knee injury is tied to an incident that happened while the occurrence policy was active, he is covered even if he did not file the claim until later. The defining characteristic of an occurrence policy is that coverage applies as long as the event leading to the claim occurred during the policy term. In contrast, a claims-made policy only covers claims that are both reported and originated during the policy period. If Ryan's claim about his knee injury was not reported during the time the claims-made policy was in effect, he would not be covered. Exclusionary policies typically outline specific situations or types of claims that are not covered, which would not be applicable for a claim of this nature. A general liability policy is a broader category that does cover many occurrences, but it can be dependent on the specifics of the policy terms and conditions, particularly related to the timing of the claim. Thus, the occurrence policy is more aptly suited to cover Ryan's situation if the injury was linked to an incident that happened while the policy was active.