Surety Insurance - Discovery Year

Hey, I saw 2018 Fall 12 a iv sample answer and I am not quite understanding this discovery year for surety insurance. I think it would be more making sense on policy year, right? Please advise.

Comments

  • This is straight from Odom text (pg 156):
    "Discovery year is generally used for fidelity and surety policies, as it is difficult to determine the actual date the “loss” occurs. As the name suggests, discovery year represents the calendar year in which a loss or damage is discovered"

  • Yes, thank you marquaty.

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