In a claims-made form, what does the retroactive date establish?

• A. The earliest date a claim can be reported for coverage to apply
• B. The earliest date an incident could occur for coverage to apply
• C. The date coverage begins for all claims
• D. The end date of the policy period

Answer: (B)

In a claims-made form, the retroactive date marks the earliest date an incident can occur for coverage to apply. Coverage is triggered when a claim is filed during the policy period, but only if the event causing the claim happened on or after the retroactive date. If the incident occurred before that date, the claim isn’t covered, even if it’s reported while the policy is in force. This date helps limit prior acts exposure and tail risk. It doesn’t set when a claim must be reported (that’s a separate reporting requirement) or the start or end of the overall policy period.