Overview

Tail Coverage for executive lines is typically purchased when the named insured needs an extended reporting period for potential claims that occurred during the policy term. A tail policy, or runoff coverage, extends an expiring insurance policy for a set period after a company is sold or ceases operations.

When would I run into this situation?

1. The policy is canceled before the initial expiration date due to the business being acquired or shutting down, and the insured requests an extended reporting period

2. The policy term ends as normal, and the insured requests an extended reporting period

How do I process this in the Ascend dashboard?

The cancelation and tail endorsement are processed as two separate actions: first you cancel the policy/program, then you endorse it to collect the tail premium.

1. Click Actions > Cancel to cancel the applicable policy(s) in Ascend and enter the information from the cancelation invoice.

   1. For more information on the cancelation workflow, click here.

   2. If financed, cancelation credits/returns will be applied to the premium finance agreement. If the cancelation credits exceed the loan balance, the insured will receive a refund for the overage via check.

2. Click Actions > Endorse to create the tail endorsement invoice.

   1. For more information on the endorsement workflow, click here.

Implications for premium financing and refunds

• If the program is financed, return premium should not be netted against the balance due for the tail.

• If the wholesaler/carrier refuses to send return premium and requires that you take the credit on your statement, the insured will still be responsible for paying any remaining balance on their premium finance agreement.

Contact Us

Need more help? Contact us at [email protected] for more help.