Answer:
A supplemental extended reporting period (SERP) is an optional coverage extension for a claims-made commercial general liability (CGL) policy that gives the insured an additional period of time within which to report claims arising from prior wrongful acts. The SERP typically starts on the policy's expiration date and ends on the date the insurer receives the insured's request for coverage. The insured must request the SERP from the insurer within 180 days of the policy's expiration date. If the insured does not request the SERP within this time frame, they will not be able to report any claims that arise from prior wrongful acts. so, the correct answer is 3) 180 days.
Step-by-step explanation:
The insured typically has 180 days to request the "Supplemental Extended Reporting Period" (SERP) after the expiration of a claims-made Commercial General Liability (CGL) policy. The SERP is an extension of time that allows the insured to report claims that occurred during the policy period but are reported after the policy has expired.
This additional time can be crucial in claims-made policies where coverage is triggered by the reporting of the claim rather than the occurrence of the event. The insured should be aware of the specific terms and conditions outlined in their insurance policy, as these details can vary.