Which of the following describes the occurrence-based principle?

• A. It covers only damages that occur within the policy period.
• B. It covers damages discovered after the policy period ends.
• C. It covers damage that occurs during the policy period.
• D. It covers damages regardless of when they occur.

Answer: (C)

Occurrence-based coverage is triggered by the actual event happening during the policy period. In other words, the key moment is when the damage occurs, not when you discover it or when a claim is filed. So the best description is that it covers damage that occurs during the policy period, even if the claim is made later. This reflects the idea that the incident timing determines coverage, not the timing of discovery or reporting.

Why the other ideas don’t fit: discovering the damage after the period doesn’t change the fact that the event must have occurred during the policy period to trigger coverage, and saying it covers damages regardless of when they occur would incorrectly imply events outside the period are covered.