I am primarily retired now, and planned to take advantage of the tail hook coverage at some point during the next few years. How will this change affect me in that regard?
If you do not take advantage of the non-practicing extended reporting period endorsement(Tail) for AIG to provide at no cost prior to renewal, AIG’s obligation to provide this ends at the expiration date of this year’s coverage. We have one carrier that currently provides this benefit after one year with them as you have been with AIG for over 3 years, but they can change that policy language at any time. Most carriers provide a no cost non practicing extended reporting period endorsement, but these Lawyers Professional Liability Insurance carriers require that you are with them for at least 3 to 5 years to qualify for that benefit.
Most Lawyers Professional Liability Insurance Carriers do provide an extended reporting period endorsement (tail), if you are with them at the time you stop practicing for an additional premium. The cost for doing so is between 2.5 to 3.5 times the inforce premium at that the time you cancel or do not renew the coverage your Lawyers Professional Liability Insurance coverage.
Lee E Norcross CPCU