Which type of insurance pays out when the occurrence happened regardless of when the claim is made?

• A. Claims Made
• B. Occurrence Made
• C. General Liability
• D. Professional Liability

Answer: (B)

The key idea is occurrence-based coverage. In an occurrence-based policy, the insurer’s liability is triggered by when the incident happened, not when the claim is filed. So if the event occurred during the policy period, the claim can be made later and still be covered (subject to the policy’s terms and tail provisions). This explains why this option best fits "pays out when the occurrence happened regardless of when the claim is made."

In contrast, a claims-made policy pays only for claims filed during the policy period, so the timing of the claim matters. The other terms describe policy types rather than the timing basis, so they don’t answer the question about when the coverage is triggered.