An ERP extends the time period for which a claim can be reported after an advisor has retired or otherwise ceases to practice, for wrongful acts that occurred prior to retirement/cessation of practice. Terms of the ERP vary from one policy to the next. Your liability does not cease because you are no longer practicing and as such an ERP is available for purchase in the following instances:
Death (an estate may purchase the ERP on behalf of a deceased agent as long as it is within the 30 days after the expiry of the policy).
Disability (in which an insured gives up the license because they are no longer able to work).
Retirement or leaving the business and/or giving up a license/registration.