Common use of Optional Extended Reporting Period Clause in Contracts

Optional Extended Reporting Period. Effective upon the date of expiration or cancellation of the policy for any reason other than nonpayment of premium, the Named Insured will have the right to purchase an Optional Extended Reporting Period of one, two, or three years in which to provide written notice to the Insurer of a Claim first made against the Insured during the Optional Extended Reporting Period for an act, error, omission, incident or event that takes place prior to the end of the Policy Period. Such right must be exercised by the Named Insured within 60 days of the date of expiration or cancellation of the policy by providing written notice to the Insurer and remitting the amount of additional premium described below: 1. one year, one hundred percent (100%) of the policy annual premium; 2. two years, one hundred fifty percent (150%) of the policy annual premium; or 3. three years, one hundred seventy-five percent (175%) of the policy annual premium.