*16 TB - Umbrella Coverage Flashcards
A Personal Umbrella Policy provides additional limits for which of the following types of policies?
Personal Auto
Personal Liability
Watercraft Liability
All of the responses are correct
All of the Responses are correct
A Personal Umbrella policy:
Extends the coverage on personal effects
Insured tracts for physical damage
Is a modified form of excess liability coverage
Is a basic liability policy
Is a modified form of excess liability coverage
Under an Unbrella policy, an insured has a retention limit which is a/an:
Deductible
Waiver
Exclusion
None of the above
Deductible
An insured carries a Commercial Auto Policy. He leases a vehicle in Germany and has an accident. Which policy might respond to provide coverage worldwide basis?
The Commercial Auto Policy
An excess policy
A Commercial Umbrella Policy
None of the polices would respond to cover the accident
A Commercial Umbrella Policy
What is the term to describe the amount the insured must pay when the underlying coverage does not apply and the umbrella does apply but the insured must participate in part of the claim?
A loss deductible
A participating amount
A self insured retention
The share the loss provision
A self insured retention
What are the three limits of liability coverage that are listed in he Commercial Umbrella Policy?
The “per occurrence” limit
The “personal and advertising injury” limit
The “aggregate limit”
All of the responses are correct
All of the responses are correct
The insured carries a Homeowner Policy with an underlying liability limit of $300,000 as required by the insurer providing the Personal Umbrella Policy.
The umbrella limit is $1,000,000 with an SIR of $10,000.
After the policy is issued the insured reduces the limit to $100,000 and does not notify the insurer.
The insureds dog bites a child causing severe facial injuries. The insured is sued for $300,000 and the court awards this amount. What will the insured have to pay before the Personal Umbrella Policy participates in the claim?
Nothing
$10,000
$200,000
$100,000
$200,000
- The underlying carrier will pay the first $100,000; the insured will pay the next $200,000 and the umbrella policy will pay nothing because the insured reduced the underlying limit without notification to the insurer!!!
The insured carries a Commercial Auto Policy with the required underlying limit of $300,000 for bodily injury claims.
The Commercial Umbrella Policy is written with a “per occurrence limit” of $5,000,000 and an “aggregate limit” of $25,000,000.
He is involved in an accident causing a passenger train derailment and hundreds are injured.
Several individuals make claims in excess of $1,000,000 each.
When will the aggregate limit under the umbrella policy be factor in the auto claim?
When claims exceed $5,000,000
Never
When losses exceed $5,000,000
After the underlying insurer has paid its limit of $300,000 per claimant
Never
