West Virginia Property and Casualty Licensing Practice Exam

The basic extended reporting period on a "claims-made" CGL policy covers claims from the last five years if reported within how many days of the expiration date?

1. 30 days

2. 60 days

3. 90 days

4. 120 days

The correct answer is: 60 days

In a "claims-made" Commercial General Liability (CGL) policy, the basic extended reporting period allows for claims that occurred during the policy term but were not reported until after the policy has expired. The key aspect of this feature is that it extends the window in which claims can be reported to the insurance company. The correct period specified in the question indicates that claims can be reported up to 60 days after the expiration date of the policy. This is an important benefit for policyholders, as it provides additional time to report claims that may not have been immediately apparent or were discovered late. This short window allows businesses to manage unexpected liabilities and ensures they still have coverage for claims that occurred while the policy was active. Understanding the timeframe for this extended reporting period is crucial for anyone working with CGL policies, as it impacts the policyholder's ability to secure coverage for past incidents. Other timeframes listed in the options do not align with the standard terms for extended reporting periods, which reinforce the importance of knowing specific policy provisions in the insurance industry.