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Your expiring
policy(s) have been written under a CLAIM-MADE POLICY. The
policy only applies to covered claims arising out of your real estate
activities, as defined in the policy, made against you on or after the
inception date and before the end of your current policy period that
occurred after your retroactive date.
It is important that
you maintain continuous coverage. Failure to renew your coverage with
us by January 31, 2008 will result in the loss of your current retroactive date
(which provides prior acts coverage). This means there will be no
coverage for claims arising out of real estate activities, as defined in
your policy, prior to any new retroactive date. Instead coverage, if any,
will only apply to real estate activities that take place on or after any
new retroactive date.
If you are not renewing
your coverage with us for any reason or decide to renew after January 31, 2008
you should consider purchasing an Extended Reporting Period Endorsement
(“ERP Endorsement”), otherwise known as “tail coverage”. The ERP Endorsement
extends for three (3) years the time in which you may report certain claims alleging
wrongful acts that were committed after your current retroactive date and
before your coverage expired on January 1, 2008. The ERP Endorsement
does not extend the policy period and does not change the scope of coverage
under the expiring policy.
The cost for the
ERP Endorsement is 200% of the annualized premium you paid for coverage
that expired on January 1, 2008. To purchase the ERP Endorsement,
please send a written request, along with your payment to us by March
31, 2008. If we receive your request after March 31, 2008, we cannot
issue the ERP Endorsement to your expiring policy. |