Florida Insurance Claims Adjuster License Practice Exam

The term 'Discovery' refers to losses discovered within how many days after the policy's expiration?

1. 30 days

2. 60 days

3. 90 days

4. 120 days

The correct answer is: 60 days

Most insurance policies have a specific time frame, called the 'Discovery Period', which refers to the number of days within which any covered losses must be reported to the insurance company. Therefore, the term 'Discovery' in this question is referring to the period after the policy's expiration. Option A, C, and D are incorrect because they mention time frames that are either too short or too long after the policy's expiration to be considered the 'Discovery Period'. For example, if losses are discovered 30 days after the policy's expiration, it may be too late to report them to the insurance company and they may not be covered. Therefore, 60 days after the policy's expiration is the correct answer for the 'Discovery Period' in this question.