Companies get insurance policies in case a claim is made against them. These are (unoriginally enough) called claims-made policies.
If a claims-made policy is cancelled or terminated or allowed to expire, this can lead a gap in coverage. A claim filed after the policy had terminated wouldn't be covered; the company would be on the hook for the costs, rather than the former insurance provider.
An extended reporting period eases this problem. This provision extends the period for a claim to be filed, allowing situations that arise after the policy has terminated to be covered (up to a certain point).
So much for the "extended reporting period provision." The "bilateral" part comes in if the extended reporting period can get activated, no matter who canceled the insurance...the company buying the insurance or the provider. Otherwise, the clause is known as the "unilateral extended reporting period provision."
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Finance: What is a Credit Limit?39 Views
Finance, a la shmoop. What is a credit limit? Alright people well simply put the
maximum amount you get to charge or use on a loan or credit account, that's a [Credit limit definition written on a 100 dollar bill]
credit limit. So yeah it's that thing that keeps toddler Joey from ordering
two hundred thousand dollars worth of Snickers bars. [Toddler looking at the snickers bar]
If you accidentally you know leave out your Amex. (Illustrative example time) If you have a ten thousand
dollar line of credit or credit card you can't spend $20,000 on a trip to Vegas,
sorry. You might be able to go on a smaller trip to Atlantic City but once [Picture of Atlantic City]
you hit that 10 grand well the party's over until you pay some of that money [$10,000 flashing in red]
back, and by the way taking that smaller trip and then putting everything on red [Chips landing on a roulette table]
22 in hopes of funding your next trip to Vegas? Probably not the soundest
financial planning... sorry, let's keep it real. [Guy putting on a serious face]
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