installment tail coverage
The purchase of an extended reporting period (ERP, also referred to as “tail
coverageâ€) for a claims-made liability policy in 1-year increments. Since the
premium for an ERP is fully earned at inception, this alternative has developed
in some markets as a means of eliminating the credit risk that would result
if an insured were allowed to purchase the usual 3-year or unlimited tail coverage
endorsement by making installment payments. See also
Tail coverage.
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TRR 2/2007