FAQs
What are the rules regarding policy extensions and how long/often can they be extended before they need to be filed as a renewal?
Sep 11, 2020, 00:00 AM
Title :
What are the rules regarding policy extensions and how long/often can they be extended before they need to be filed as a renewal?
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If the policy period is being extended for 365 days or more and all original terms and conditions remain, then we ask that the additional premium endorsement be filed as a renewal transaction in SLIP. Filing a renewal for policy extensions allows the policy to be charged the appropriate Service Office fee and assessment rates (if applicable) for the new policy period. The insurer is not required to issue a policy renewal – this is for filing purposes only.
For example, if the original policy term is January 1, 2018, through January 1, 2019, and an endorsement is issued that extends the policy expiration to January 1, 2020. You should file the extension endorsement as a renewal transaction in SLIP with an effective date of January 1, 2019, and an expiration date of January 1, 2020.
The only exception is when the endorsement is an extended reporting period (ERP) endorsement, also known as "tail coverage." These endorsements are typically associated with claims-made liability policies. When submitting ERP endorsements in SLIP, please file the endorsement within the original policy term and do not extend the expiration date.
For example, if the original policy term is January 1, 2018, through January 1, 2019, and an endorsement is issued that extends the policy expiration to January 1, 2020. You should file the extension endorsement as a renewal transaction in SLIP with an effective date of January 1, 2019, and an expiration date of January 1, 2020.
The only exception is when the endorsement is an extended reporting period (ERP) endorsement, also known as "tail coverage." These endorsements are typically associated with claims-made liability policies. When submitting ERP endorsements in SLIP, please file the endorsement within the original policy term and do not extend the expiration date.
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