What type of insurance only responds to claims made during its active policy period and a designated extended period?

Claims-made coverage is a specific type of insurance policy that only provides coverage for claims that are made during the policy period or during a designated extended reporting period, often referred to as "tail coverage." This means that if a claim arises after the policy has expired, and it was not reported within the necessary timeframe, the coverage would not respond to that claim.

This type of coverage is particularly common in professional liability insurance, such as malpractice insurance for physicians or errors and omissions insurance for professionals. Its structure encourages insured parties to report incidents promptly and is designed to limit the insurer’s liability to claims that are made while the policy is in force.

The other options listed do not accurately describe this unique characteristic of responding only to claims during a specified timeframe. Lifetime Coverage suggests ongoing protection, Historical Coverage points to past incidents rather than claims within a certain period, and Lifetime Guaranteed Coverage implies indefinite coverage without regard to the timing of claims. Thus, Claims-Made Coverage is the correct answer as it distinctly encapsulates the terms of coverage specific to the time limits involved.