Which statement regarding the Supplemental Extended Reporting Period (SERP) under a Claims-made CGL policy is false?

In the context of a Claims-made Commercial General Liability (CGL) policy, the Supplemental Extended Reporting Period (SERP) is an important feature that allows for the reporting of claims that occur after the policy period has ended, provided the event occurred during the policy's active coverage.

The statement that pertains to the SERP's nature as automatic and not requiring a request from the insured is indeed false. The SERP is not automatically activated; rather, it must be specifically elected by the insured, usually during the policy's termination process. Insured parties may need to pay an additional premium to access this extended reporting feature, and it is crucial to understand that they must make the election for this extended period within a certain timeframe following the policy's expiration.

By contrast, the options stating that it extends coverage for claims after the policy period and applies to specific types of claims are true characteristics of the SERP. Furthermore, the requirement for an additional premium reflects the nature of this added coverage, which necessitates financial commitment from the insured. Recognizing these details about the SERP helps to clarify its functionality within the broader scope of claims-made policies.