What it does
CG 21 36 states that Paragraph 3. of Section II – Who Is An Insured does not apply. That paragraph normally gives newly acquired or formed organizations (other than partnerships, joint ventures and LLCs) named insured status for up to 90 days.
Who needs it
Often attached to holding companies, real estate investors and acquisitive businesses.
Key provisions and limits
- No coverage for a new subsidiary until it is added by endorsement.
Quoting and selling notes
- Ask clients to report acquisitions and new entities before closing.
- The opposite approach, extending automatic status to LLCs, is CG 24 54.
- Ask about planned acquisitions, new LLCs for real estate, and joint ventures at every renewal.
