Florida Certified Insurance Representative (CIR) Practice Exam 2025 - Free Insurance Representative Practice Questions and Study Guide

The correct answer, which refers to an Occurrence Policy, is significant because it covers incidents that occur during the policy period, regardless of when the claim is actually made. This means that if a malpractice incident took place before the effective date of the policy but is reported after the policy was in force, the policy would still respond to that claim.

This type of policy is essential in providing long-tail coverage because claims often arise long after an event occurs. For practitioners, this means they can have peace of mind knowing that as long as the incident happened while the policy is active, they are covered even if the claim arises later.

In contrast, other options like claims made policies only cover claims that are made during the policy period. Prior acts and retrospective policies are often tied to specific coverage times and may not provide the comprehensive protection that an occurrence policy would in relation to past events. Thus, an occurrence policy is a crucial choice for those who want broad and lasting liability coverage.