Common use of Discovery Period Clause in Contracts

Discovery Period. In the event that, on the expiry of the period of insurance, this policy is not renewed or replaced with any other management liability policy broadly equivalent to this policy in scope then the director shall have the right to purchase a discovery period so that for the purposes of insuring clause 3.1, any notifiable claim made in the discovery period shall be deemed to have been first made during the period of insurance, subject to the following conditions: (a) cover shall apply only to notifiable claims arising directly or indirectly out of wrongful acts committed (or alleged to have been committed) prior to the expiry of the period of insurance, and (b) the discovery period is only effective if the one hundred (100%) percent additional premium is paid within thirty (30) days of the expiry of the period of insurance; and (c) the right to purchase the discovery period is not exercisable after or, once purchased, shall lapse upon: (i) the director or the company effecting a management liability policy broadly equivalent to this policy in scope; or (ii) the appointment of an insolvency practitioner (or equivalent) as a liquidator, administrator or receiver (or equivalent) of the company; and (d) the insurer shall have no liability to a director to the extent that the director is entitled to an indemnity from the company under any applicable company law or agreement.