Los Angeles Claims Adjuster Property and Causality Practice Exam

What is the typical duration for claims reporting under the Basic Extended Reporting Period?

1. 30 days after expiration

2. 60 days after expiration

3. 90 days after expiration

4. 120 days after expiration

The correct answer is: 60 days after expiration

The Basic Extended Reporting Period typically allows for claims to be reported for 60 days after the expiration of the policy. This period provides additional time for policyholders to notify their insurer about claims that may have arisen from incidents that occurred during the active coverage period but were not reported until after the policy had expired. This timeframe is particularly crucial for fostering a smooth transition to new coverage or for handling any unforeseen claims that may develop. Understanding this period is essential for claims adjusters as it influences how claims are processed and evaluated in relation to the coverage timeline. In short, the 60-day duration aligns with insurance industry practices to ensure both the insurer and insured have adequate time to manage claims that could have been filed before policy expiration.