Which of the following best describes the duration of automatic coverage for a Newly Acquired Organization?

• A. It does not apply
• B. For unlimited time without notice
• C. For the life of the policy only if the insurer approves an extension
• D. A limited period

Answer: (D)

Automatic coverage for a newly acquired organization is provided only for a limited period. This temporary window gives the insured time to notify the insurer and arrange proper coverage for the new entity, rather than extending indefinitely. The exact length is defined by the policy (often a short span like 30 to 90 days). After that period, coverage generally ends unless the new organization is added or an extension is arranged. This is why the best description is a limited period: it reflects the temporary nature of the automatic coverage, as opposed to unlimited, life-of-policy, or nonexistent coverage.