What are the three conditions for the extortion coverage?

The conditions for extortion coverage are correctly outlined by identifying criteria that must be met for a claim to be considered valid under such a policy. The chosen conditions specify that loss of property should occur before reporting to authorities, implying that for the claim to be applicable, the insured must have complied with the requirement to inform law enforcement after the extortion event. Captivity in specified locations can indicate that the circumstances of the extortion have a defined geographic scope, limiting coverage to certain situations and thereby clarifying the insurer's obligations. Lastly, stating that ransom payments may be covered after the policy expiration if the threat was communicated before highlights the principle of protecting the insured even in cases where the claim's timing overlaps with the policy coverage period, provided the event occurred while the coverage was active.

These conditions reflect the intricate nature of extortion events, outlining specific scenarios under which coverage is granted, thus safeguarding both the insured and the insurer's interests.