Which one of the following statements is correct regarding the maintenance of underlying insurance condition of an umbrella liability insurance policy?
Asked by: Garth Rohan | Last update: February 28, 2023Score: 4.7/5 (3 votes)
Which one of the following statements is correct regarding the maintenance of underlying insurance condition of an umbrella liability insurance policy? The condition obligates the insured to monitor the required underlying coverages to ensure that they remain in force.
What is a self insured retention under an umbrella policy quizlet?
An underlying policy does not cover the claim. CorrectCorrect. The self-insured retention applies to the coverage provided by an umbrella liability policy when the underlying policy does not cover the claim.
Which one of the following best describes the differences between a following form excess liability policy and a self contained excess liability policy?
Which one of the following best describes the differences between a following-form excess liability policy and a self-contained excess liability policy? A self-contained excess liability policy is subject only to its own provisions.
Can an umbrella policy be placed without underlying insurance?
Because an umbrella policy is designed to be a form of secondary insurance, it will have underlying insurance requirements. This means that you'll have to have a certain amount of auto insurance and homeowners insurance coverage as a condition of being approved for an umbrella policy.
Which one of the following best describes the property not covered provisions of the Businessowners policy BOP )?
Which one of the following best describes the "property not covered" provisions of the businessowners policy (BOP)? Many of the "property not covered" items listed in the BOP are specifically excluded because they relate to types of businesses that are not eligible for BOP coverage.
Primary Excess Vs Umbrella Policy Coverage (Liability Insurance)
Which of the following will be covered by Businessowners property coverage form?
The Special Businessowners Property Coverage Form covers risks of direct physical loss: on an open peril basis. The Special Businessowners Property Coverage Form covers risks of direct physical loss on an open peril basis, subject to exclusions and limitations.
Which of the following is true regarding the earthquake cause of loss form?
Which of the following is true regarding the Earthquake Cause of Loss Form? -The Earthquake Causes of Loss Form cannot be used alone to provide an Earthquake policy.
Is umbrella policy same as liability policy?
Umbrella insurance provides coverage beyond the limits of your other insurance policies, or for claims that may not be covered by liability policies. Umbrella insurance generally provides liability coverage for: Injuries. Damage to property.
When an umbrella policy is broader than underlying insurance?
As a general rule, umbrella policies provide coverage that is broader than underlying forms. Excess policies provide additional limits—they go above underlying limits and increase only the amount of coverage, not the scope of coverage. Response 2: There is no shortcut on this.
Which of the following statements would be correct if an insured failed to maintain?
Which of the following statements would be correct if an insured failed to maintain the underlying limits as required by a personal umbrella policy? The insured would be responsible for the amount required as underlying limits in the event of a claim.
Which of the following is true regarding the difference in conditions policy?
Which of the following is true regarding the Difference in Conditions Policy? There is no coinsurance clause or pro rata clause and it may be written for a different amount from the policy it complements --- The DIC policy is not an excess layer of insurance.
What is follow form excess coverage?
Follow-form policies are meant to help simplify and provide consistent coverage for excess liability programs. Ideally, follow form policies would provide excess coverage under the same terms and conditions as the underlying policy, that is follow the underlying form.
Which type of policy always offers broader coverage than the underlying policy?
For example, an umbrella policy may include a worldwide coverage territory, which is often a broader coverage territory than found in the underlying liability policies.
What is true about an umbrella policy?
The key difference between umbrella coverage and excess liability is that an umbrella is an open-peril policy – which means if it's not specifically excluded, it's covered. In contrast, an excess liability policy only covers what's included in the primary liability policy.
What is an umbrella policy quizlet?
umbrella policy. provides excess liability protection beyond underlying home and auto policies, or after the retention is paid. excess liability policy. provides excess home and auto only. required primary limits.
What type of coverage do umbrella policies provide quizlet?
umbrella policies can provide excess protection over personal liability coverage, automobile liability coverage, and many other types of liability programs. there is usually a minimum limit of liability the insured must carry and maintain on the basic policies, such as $300,000 on personal liability risks.
What is umbrella excess liability insurance?
A form of excess liability insurance, umbrella policies cover claims exceeding the limits stipulated by the underlying policy's terms, while also providing broader coverage encompassing losses outside of those outlined within the initial policy.
What is controlling underlying insurance?
“Controlling underlying insurance” means any policy of insurance or self-insurance listed in the declarations under the schedule of “controlling underlying insurance.” Adding the word controlling is important. It is telling us that the underlying insurance controls how coverage applies.
What does underlying limit mean?
Underlying Limit means an amount equal to the aggregate of all limits of liability specified in the Schedule for all Underlying Policies, plus the uninsured retention, if any, applicable to the Primary Policy.
Why is umbrella insurance important?
Having a personal umbrella policy helps ensure your assets—your car, house, investments, retirement accounts, checking and savings accounts, and even your future income—are protected in case of an unforeseen accident that exceeds your auto or homeowners limits. Better protects you.
Does umbrella cover professional liability?
Does Umbrella Insurance Cover Professional Liability? Umbrella insurance can most certainly cover professional liability and it's fast becoming one of the most popular forms of insurance with professionals. Psychologists, financial planners, and investors are just some occupations that take advantage of this policy.
What is an umbrella law?
Umbrella policy means an additional insurance coverage for losses that exceed the basic or usual limits of liability provided by an underlying policy. Homeowner's insurance policies and auto insurance policies are the examples of umbrella policy.
Which one of the following is a covered cause of loss under the causes of loss basic form?
The basic causes of loss form (CP 10 10) provides coverage for the following named perils: fire, lightning, explosion, smoke, windstorm, hail, riot, civil commotion, aircraft, vehicles, vandalism, sprinkler leakage, sinkhole collapse, and volcanic action.
Which of the following is correct concerning the special causes of loss form?
Which of the following is correct concerning the Commercial Property Special Causes of Loss Form? The Special Cause of Loss form provides 'open perils' coverage. Beyond the expanded list of covered perils, it provides some additional coverage extensions, and coverage sublimits.
Which of the following conditions under a Building and personal property coverage form determines how losses will be paid?
Which of the following conditions under a Building and Personal Property Coverage Form determines how losses will be paid? The Valuation Clause sets forth the method of evaluating losses, and treats valuation of unusual property such as stock that has been sold, glass, outdoor equipment, and valuable papers.