Which term refers to losses that occurred and were discovered during the policy period, or within one year of expiration?

The Claims Discovery Period is the correct term for describing losses that occurred and were discovered during the policy period or within one year of expiration. This is a critical feature in insurance policies, particularly in liability or property coverage, as it defines the time frame in which claims can be initiated after the occurrence of an event.

Understanding this concept is essential for both policyholders and insurers, as it allows for clarity regarding when a claim can be reported and the extent of coverage provided for incidents that may not be immediately obvious. In essence, this period facilitates the reporting and processing of claims that may have occurred some time before but were not discovered until later within the specified time limit.

The other terms do not align with this definition. For instance, an Exclusion Period typically refers to a time frame during which coverage is not provided for certain risks, Extortion is unrelated as it refers to a criminal act rather than a claims process, and Coverage Limit pertains to the maximum amount an insurer will pay for covered losses but does not describe the timing around when those losses can be claimed.