Most liability policies provide coverage on an occurrence basis. Which statement is incorrect regarding what the policy covers?

The assertion that the amount stated on the policy is the maximum for all occurrences during the policy period is incorrect because it misrepresents the nature of occurrence-based coverage. In an occurrence-based liability policy, the limit applies to each individual occurrence rather than being a cumulative limit for the entire policy period.

This means that if multiple incidents occur during the policy period, each incident can potentially trigger its own limit of coverage, allowing for a significant total payout across different occurrences as long as they do not exceed the stated limit for each individual event. In contrast, the maximum limit for all occurrences would imply a cap that restricts how much can be claimed in total, which is not aligned with the principles of occurrence-based coverage.

Other statements accurately reflect key aspects of such policies: they confirm that coverage exists for bodily injury or property damage due to unforeseen accidents and acknowledge the inclusion of claims arising from long-term exposure to harmful conditions. Each occurrence effectively resets the coverage limits, ensuring that an insured can claim for multiple incidents provided they fall within the terms of the policy.