*16 TB - Umbrella Coverage Flashcards Preview

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Flashcards in *16 TB - Umbrella Coverage Deck (8)
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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

1

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

2

Under an Unbrella policy, an insured has a retention limit which is a/an:


Deductible

Waiver

Exclusion

None of the above

Deductible

3

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

4

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

5

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

6

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!!!

7

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