Which statement best describes an occurrence-made insurance policy?

• A. It pays out only when the claim is made.
• B. It pays out when the occurrence happened regardless of claim timing.
• C. It never pays.
• D. It pays only for property damage.

Answer: (B)

The key idea is that coverage is tied to when the event causing the loss happens, not when the claim is reported. An occurrence-made (occurrence-based) policy pays for claims arising from any incident that occurred during the policy period, even if the claim is filed later. So if damage or injury occurs while the policy is in effect, the insurer should cover the resulting claim regardless of when you actually file the claim. This contrasts with a claims-made policy, where coverage depends on when the claim is made, not when the event occurred. The other choices don’t fit because they either describe claims-made timing, suggest the policy never pays, or unnecessarily limit the scope to property damage.