71. A customer was injured while using a product on January 27, 2020. The customer did not file a claim for this injury until March 29, 2023, after the manufacturer had gone out of business. Which type of Commercial General Liability (CGL) policy would provide coverage for this claim, based on its primary trigger?
Answer: A
An Occurrence-form CGL policy that was active on January 27, 2020.
An Occurrence-form CGL policy provides coverage for incidents that occur during the policy period, regardless of when the claim is filed. Since the injury took place on January 27, 2020, and the policy was active at that time, it would cover this claim.
A) An Occurrence-form CGL policy that was active on January 27, 2020.
This option is correct because an Occurrence-form CGL policy covers claims for injuries that happen during the policy period. Since the injury occurred on January 27, 2020, and the policy was active at that time, the claim would be covered under this type of policy.
B) Any CGL policy active at the time the business ceased operations.
This option is incorrect because simply being active at the time the business ceased operations does not guarantee coverage for past incidents. Coverage must be based on when the actual injury occurred, which in this case was prior to the business going out of operation.
C) A Claims-made form CGL policy that was active on January 27, 2020.
This option is incorrect because a Claims-made form CGL policy requires that both the incident occur and the claim be made during the policy period for coverage to apply. Since the claim was filed over three years after the injury, it would not be covered even if the policy was active at the time of the incident.
D) A Claims-made form CGL policy with an extended reporting period purchased after March 30, 2023.
This option is incorrect because a Claims-made policy, even with an extended reporting period, would not cover claims made after the policy's expiration if the incident occurred before the policy was active. The injury happened in 2020, and the claim was filed after the manufacturer had gone out of business, making this coverage unavailable.
Conclusion
The correct answer is definitively right because an Occurrence-form CGL policy provides coverage for incidents based on when they occur, rather than when the claim is filed. All other options fail to meet the necessary criteria for coverage, as they either rely on the timing of the claim or the policy's status at an irrelevant time. Thus, only the Occurrence-form CGL policy aligns with the details of the situation presented.