Which statement is true regarding the claims made liability form?

The claims made liability form is designed to provide coverage for claims that are made during the policy period, but it is important that the incidents leading to those claims occur on or after the retroactive date set in the policy. This means that both the timing of when the incident occurs and when the claim is filed are crucial for coverage. By requiring that incidents occur during the policy period, this form helps insurers manage risks associated with claims that can arise from past occurrences.

The other statements do not accurately describe the characteristics of the claims made liability form. For instance, while claims can often be filed after the policy ends, they must relate to incidents that occurred during the stated policy period. Additionally, the claims made form does not offer unlimited retrospective coverage; it usually has a defined retroactive date. Lastly, while certain types of liability insurance may involve auto insurance, the claims made liability form is not primarily associated with it, but rather with professional liability and general liability contexts.