Which of the following is a characteristic of "claims-made" policies?

Claims-made policies are designed to provide coverage for claims that are made during the time the policy is in effect, regardless of when the incident occurred. This means that for a claim to be covered, it must be reported to the insurer while the policy is active. This is a fundamental characteristic of claims-made policies, making them distinct from occurrence policies, which cover incidents that happen during the policy period, regardless of when the claim is made.

This specific feature encourages policyholders to report any potential claims as soon as they materialize, ensuring timely handling by the insurer. Consequently, it creates a clear operational timeframe that governs the liability and reduces ambiguity about when coverage applies.

In contrast, other options refer to aspects that do not align with the structure of claims-made policies. For example, options mentioning coverage for incidents before the policy was in force or claims being made indefinitely fall outside the typical framework of claims-made policies.