Assignment 9 - Underwriting Umbrella and Excess Liablity Insurance

Which one of the following statements is correct with respect to umbrella liability insurance? Select one: A. Most umbrella liability policies do not contain a deductible or self-insured retention. B. If an insured fails to maintain underlying insurance with agreed limits, the umbrella policy will respond as though the required underlying coverage is in place. C. Umbrella liability polices provide coverage for gaps in underlying policies, but will not provide coverage when the aggregate limits of the underlying policies have been exhausted. D. Policy language and underwriting rules are standardized among umbrella liability insurers.

B. If an insured fails to maintain underlying insurance with agreed limits, the umbrella policy will respond as though the required underlying coverage is in place.

Which one of the following statements is correct with respect to underwriting umbrella liability insurance? Select one: A. If the insurer providing the underlying coverage is unable to defend a claim, the umbrella insurer is relieved of its duty to do so. B. It requires careful analysis of the loss exposures covered by the underlying policies, plus those exposures covered only by the umbrella policy. C. Umbrella policy underwriters need not concern themselves with the specific coverage provided under the underlying policies or endorsements. D. Umbrella liability insurance policies are generally written with relatively low limits because they are excess of underlying coverage.

B. It requires careful analysis of the loss exposures covered by the underlying policies, plus those exposures covered only by the umbrella policy.

Which one of the following statements is correct with respect to umbrella and excess liability insurance? Select one: A. Umbrella liability insurance is designed to cover an aggregation of smaller, high-frequency losses. B. While umbrella policies are typically layered, a single excess policy will provide all the increased limits an insured requires. C. The self-insured retention for a commercial umbrella liability policy is usually $10,000. D. Excess liability insurance policies typically offer much broader coverage than do the underlying policies.

C. The self-insured retention for a commercial umbrella liability policy is usually $10,000.