Florida Insurance Claims Adjuster License Practice Exam

Mr. Smith buys a CGL claims-made policy on 1-1-04 with a retroactive date of 1-1-04 and another on 1-1-05 with a retroactive date of 1-1-05. An accident occurs on 7-1-04 and the claim is filed on 9-1-05. Which policy covers?

1. 1-1-04 claims-made policy

2. 1-1-05 claims-made policy

3. 1-1-04 is primary and 1-1-05 policy is excess

4. Neither policy covers

The correct answer is: Neither policy covers

Neither policy covers because the accident occurred before the retroactive dates of both policies. Retroactive dates determine when coverage begins and since the accident took place on 7-1-04, it falls outside the retroactive date for both policies. Option A and B are incorrect because both policies have retroactive dates that do not cover the accident. Option C is incorrect because both policies have the same retroactive date, making them both primary policies.