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Q36 Single choice

An accountant purchased an Errors and Omissions (E & O. policy on a claims made basis with a retroactive date of January 1, 2020. The accountant reports a claim to their Broker on March 1, 2025 for an error that occurred on June 5, 2021, while their current policy is in force and uninterrupted.

How will the insurer most likely respond?

A
The claim will be denied because the error occurred more than one year ago.
B
The claim will be covered because both the error and the claim fall within the policy and retroactive periods.
C
The claim will be denied because the policy was not in place at the time of the error.
D
The claim will be covered as it was immediately reported upon discovery.

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