Common use of Optional Extended Reporting Period Clause in Contracts

Optional Extended Reporting Period. If we or the named insured shall cancel or elect not to renew this policy, you shall have the right, upon payment of an additional premium of up to 100% of the full annual premium, to a period of up to one (1) year following the effective date of such cancellation or nonrenewal (herein referred to as the “Optional Extended Reporting Period”) in which to give written notice to us of claims first made against you during the Optional Extended Reporting Period for any wrongful act occurring prior to the end of the policy period and otherwise covered by this policy. As used herein, “full annual premium” means the premium level in effect immediately prior to the end of the policy period. The rights contained in this clause shall terminate, however, unless the named insured provides written notice of such election together with the additional premium due to us within thirty (30) days of the effective date of cancellation or non-renewal. The additional premium for the Optional Extended Reporting Period shall be fully earned at the inception of the Optional Extended Reporting Period. The Optional Extended Reporting Period is not cancelable. This clause and the rights contained herein shall not apply to any cancellation resulting from non-payment of premium. Our offer of renewal terms, conditions, limits of liability and/or premiums different from those of the expiring policy shall not constitute a refusal to renew. The aggregate Limit of Liability for any Extended Reporting Period shall be part of and not in addition to the aggregate Limit of Liability for the policy period. If the named insured exercises its right to purchase an Optional Extended Reporting Period, the Automatic Extended Reporting Period shall be deemed void ab initio.

Optional Extended Reporting Period. (1) If we this Policy is canceled or non-renewed by the named insured shall cancel Company for any reason other than fraud, material misrepresentation, material omission or elect non-payment of premium, or if the Named Insured cancels or chooses not to renew this policyPolicy, you then the Named Insured shall have the right, following the effective date of such cancellation, if applicable, or the Expiration Date of this Policy, to purchase an Optional Extended Reporting Period, upon written request and payment of an additional premium of up to the percentage of the full annual premium not to exceed: (a) for twelve (12) months: 100% of the full annual premium, to a period of up to one . (1b) year following the effective date of such cancellation or nonrenewal for twenty-four (herein referred to as the “Optional Extended Reporting Period”24) in which to give written notice to us of claims first made against you during the Optional Extended Reporting Period for any wrongful act occurring prior to the end months: 150% of the policy period and otherwise covered by this policy. full annual premium. (c) for thirty-six (36) months: 200% of the full annual premium. (2) As used herein, “full annual premium” means the equivalent annual premium level for the coverage terms in effect immediately prior to the end of the policy period. The rights contained in this clause shall terminatePolicy Period, however, unless the named insured provides written notice of such election together with the including any additional premium due for endorsements. (3) At the commencement of the Optional Extended Reporting Period, the entire premium shall be considered fully earned. (4) If purchased, the Optional Extended Reporting Period will only apply to: (a) with respect to us within thirty the Third Party Liability Insuring Agreements of this Policy, any Claim first made against an Insured during the Optional Extended Reporting Period, provided always that the actual or alleged Wrongful Acts giving rise to such Claim occur on or after the Retroactive Date and prior to the end of the Policy Period, and the Claim is reported to the Company during the Optional Extended Reporting Period; and (30b) days with respect to the First Party Insuring Agreements of this Policy, any Claim reported to the Company during the Optional Extended Reporting Period, provided always that the First Party Insured Event giving rise to such Claim first occurs during the Policy Period but before the effective date of cancellation or non-renewal. The additional premium for the Optional Extended Reporting Period shall be fully earned at Expiration Date of this Policy, whichever applies, and the inception of First Party Insured Event is first discovered by an Executive during the Optional Extended Reporting Period. The Optional Extended Reporting Period is not cancelable. This clause and the rights contained herein shall not apply to any cancellation resulting from non-payment of premium. Our offer of renewal terms, conditions, limits of liability and/or premiums different from those of the expiring policy shall not constitute a refusal to renew. The aggregate Limit of Liability for any Extended Reporting Period shall be part of and not in addition to the aggregate Limit of Liability for the policy period. If the named insured exercises its right to purchase an Optional Extended Reporting Period, the Automatic Extended Reporting Period shall be deemed void ab initio.