American Association of Critical-Care Nurses (AACN) Certification Practice Test

What does an occurrence-based policy cover?

1. Claims reported during active policy period

2. Claims made after the policy has expired

3. Claims occurring while the policy is active

4. Only claims for incidents caused by negligence

The correct answer is: Claims occurring while the policy is active

An occurrence-based policy provides coverage for claims related to incidents that occur during the time the policy is active, regardless of when those claims are reported. This means that if a covered event happens while the policyholder holds the policy, the policy will cover claims made even after the policy has expired, as long as the event occurred during the policy period. This type of coverage is particularly beneficial for professionals, as it protects them from potential future claims stemming from actions or incidents that occurred while they were insured, offering greater peace of mind compared to claims-made policies, which only cover claims reported during the policy period. The other options do not describe the scope of coverage accurately. For instance, claims reported during the active policy period and claims made after the policy has expired address specifics that do not fully capture the essence of occurrence-based coverage. Also, not all claims must arise from incidents caused by negligence, as occurrence-based policies can cover a broader range of events.