# Discovery Period

(1) In the event of Termination of Coverage A, other than by reason of cancellation for non-payment of premium or due to institution of a proceeding other than as contemplated by Condition N, the Named Insured may elect, prior to the Termination Date of such Coverage A, to secure Coverage B for the following Annual Period for such Insureds as the Named Insured shall designate, by giving the Insurer written notice of such election and paying to the Insurer the annual premium set forth in the attached Schedule D no later than the date of commencement of such Annual Period.

(2) In the event that the Named Insured elects to secure Coverage B pursuant to paragraph (1) above, the Named Insured may elect to continue such Coverage B for any number of additional Annual Periods by giving the Insurer written notice of each election for a subsequent Annual Period and paying to the Insurer the corresponding annual premium set forth in the attached Schedule D no later than the end of the Annual Period for which such Coverage B was previously elected. If the Named Insured shall fail to elect Coverage B for any Annual Period, it may not elect Coverage B for any subsequent Annual Period.

(3) For the purpose of application of retentions and limits of liability, notice of an Occurrence given during the Discovery Period shall be deemed to have been given during the final Annual Period in the Policy Period. The aggregate limit of liability shall not be reinstated for the Discovery Period.

## Former Subsidiaries, Affiliates and Associated Companies

If any subsidiary, affiliate or associated company of the Named Insured which is an Insured hereunder shall cease to be such a subsidiary, affiliate or associated company of the Named Insured, then at such time Coverage A shall automatically terminate as to such former subsidiary, affiliate or associated company. Coverage A shall continue with respect to the Named Insured and any other entity which remains an Insured for its own liability, if any, arising out of its prior ownership of or affiliation or association with the former subsidiary, affiliate or associated company. At such time of such automatic termination of coverage, Coverage B shall, unless the Named Insured otherwise specifies, automatically incept as to such former subsidiary, affiliate or associated company and continue in force for the balance of the Annual Period, without additional payment or return of any premium. Prior to the end of the Annual Period, such former subsidiary, affiliate or associated company may, with written consent received by the Insurer from the Named Insured, elect to extend Coverage B beyond the end of the Annual Period on such terms and conditions, for such period, subject to such limits and for such additional premium as may be agreed with the Insurer.

## Notice

All notices under any provision of this Policy shall be in writing and given by hand, prepaid express courier, airmail, telex or telecopier properly addressed to the appropriate party and will be deemed as having been effected only upon actual receipt. Notice to any Insured may be given to the Named Insured at the address shown in Item 1(b) of the Declarations or to such other person as the Named Insured shall designate in Item 5 of the Declarations.

## Headings

The descriptions in the headings and sub-headings of this Policy are inserted solely for convenience and do not constitute any part of the terms or conditions hereof.