CIC COMMERCIAL MULTILINE EXAM
QUESTIONS WITH CORRECT ANSWERS
Explain the importance of concurrent dates and be able to provide solutions for non-
concurrency situations (LO3) - Answer-Concurrent dates means the policy period of the
excess/umbrella policy are the same as those of the underlying insurance policies
The declarations of the excess liability has a schedule of underlying insurance that
indicates the required limits that are to be in effect at its effective date.
The underlying limits must be unimpaired at the effective debate of the excess liability
Describe the underlying insurance requirements of excess liability/commercial umbrella
policies and apply the in a practical applications. (LO4)*** - Answer-Coverage
Most insures typically require CGL, Business Auto and Employer Liability
Other liability policies may be required for other known exposure such as aircraft, Iiquor
liability, watercraft
Limits of Insruance
limits required by varies by insurer
Some exposures require higher underlying limits
The required limits must be in full effect at the effective date of the policy period
Compare and contract the insuring agreement known as pay on behalf and indemnify
(LO5) - Answer-Pay on Behalf of
- The insure has stricter control of defense, investigation or settlements
- The insurer pays damages directly to third party on behalf of
-The insure has the duty to defend when the underlying does not provide coverage
Indemnify
- strict indemnity (insured uses their own funds directly to pay claims and insurer
reimburses)
- based on legal obligations to pay (insured still has control but indemnity is based on
legal obligation to pay - insurer write checks to insured)
types of damages, defense costs, and ultimate net loss in Excess liability and umbrella
policies
what is the coverage area - Answer-damages
- follow form follows underlying
- excess liability/commercial umbrella (pay because of bodily injury and property
damage as defined or pays because of personal advertising injury as defined)
defense
- duty to defend
,- not duty to defend in some cases (still right to defend)
- defense cost included within the SIR is often referred to as first dollar defense
ultimate net loss (different ways to pay this- what the court says must be paid)
- all sums paid or payable in settlement
- all sums paid or payable as damages
coverage area
- worldwide or anywhere in universe, could also be limited
exclusions for excess and umbrella - Answer-- aircraft
- watercraft
- contractual liability
- liquor liability
- pollution
- damage to property
- damage to your work
- imparted property
- electronic data liability
- professional
- uninsured and underinsured motorists
- Employment related practices
layering options for excess liability and umbrella policies - Answer-1. single
2. layering
3. quota share
4. buffer layer
Identify common cyber exposures (LO1) - Answer-- data storage both active and at rest
- collection of private information on employees, clients, vendors, etc
- A website and or social media presence
- Access to the internet and integration, sharing or transmission of dates and/or
communications with others vita the internet
- E-commerce business transactions
- Credit card transactions
- E&O or professional liability
- Internet of Things
- Subject to State and Federal Laws
reasons for cyber coverage - Answer-- everyone uses the internet
- for those who have data in their CCC
- the policies are flexible
coverage for cyber includes assets and intellectual property
, Possible third party losses (not all covered by insurance) - Answer-- Unintended
disclosure of information
- Disclosure of incorrect or damaging information or information that could result in a
violation of privacy.
- Infringement of copyright, intellectual property rights, etc....
- Publications that slander, libel, or disparage
- Transmittal of a virus, malicious code, malware, ransom ware
- Access and disclosure by and unauthorized user
- Denial of service (DoS) attack or DDos (distributed denial of service)
- Programming errors
- Data entry errors
- Liability claims/lawsuits alleging violation of state, federal and other country statutes,
especially those associated with non-personally identifiable financial, health of other
sensitive information.
what are DOS and DDOS - Answer-DOS (denial of service)- attack from one source to
prevent access to computer system
DDOS (distributed denial of service)-attack from more than one source or/and more
than one location at the same time
Possible first part losses (not all covered by insurance) - Answer-- a security breach
typically results in costs/expenses to investigate the source
- virus can result in loss of or damage to electronic data
- ransomware infection
- unauthorized user could make an extortion demand (cyber extortion)
- malware then you have to clean the website
- unauthorized person can cause vandalism
- if personal or confidential files are breached, cost to notify affected parties
- security breaches that result in loss of income, expenses tot minimize a business
interruption, loss to income due to reputation
- theft of intellectual property
- computer fraud
- losses as a result of social engineering (voluntary party using a computer system)
- DOS or DDOS to a website or social media that results in loss of income
- costs due to mechanical breakdown and physical cause
Identify and apply the common exclusion or limitation in the ISO BOP policy. - Answer-
Electronic data is not covered property, except as provided under additional coverage.
Identify and Describe the type of cyber insurance coverage that are available for first
party losses (LO4) - Answer-1. Security Breach Expense
A. Typically includes the costs to notify affected parties and may also include the cost
to investigate the cause of a security break.
B. May also provide for other reasonable expenses sud as identify theft protections or
credit monitoring.
QUESTIONS WITH CORRECT ANSWERS
Explain the importance of concurrent dates and be able to provide solutions for non-
concurrency situations (LO3) - Answer-Concurrent dates means the policy period of the
excess/umbrella policy are the same as those of the underlying insurance policies
The declarations of the excess liability has a schedule of underlying insurance that
indicates the required limits that are to be in effect at its effective date.
The underlying limits must be unimpaired at the effective debate of the excess liability
Describe the underlying insurance requirements of excess liability/commercial umbrella
policies and apply the in a practical applications. (LO4)*** - Answer-Coverage
Most insures typically require CGL, Business Auto and Employer Liability
Other liability policies may be required for other known exposure such as aircraft, Iiquor
liability, watercraft
Limits of Insruance
limits required by varies by insurer
Some exposures require higher underlying limits
The required limits must be in full effect at the effective date of the policy period
Compare and contract the insuring agreement known as pay on behalf and indemnify
(LO5) - Answer-Pay on Behalf of
- The insure has stricter control of defense, investigation or settlements
- The insurer pays damages directly to third party on behalf of
-The insure has the duty to defend when the underlying does not provide coverage
Indemnify
- strict indemnity (insured uses their own funds directly to pay claims and insurer
reimburses)
- based on legal obligations to pay (insured still has control but indemnity is based on
legal obligation to pay - insurer write checks to insured)
types of damages, defense costs, and ultimate net loss in Excess liability and umbrella
policies
what is the coverage area - Answer-damages
- follow form follows underlying
- excess liability/commercial umbrella (pay because of bodily injury and property
damage as defined or pays because of personal advertising injury as defined)
defense
- duty to defend
,- not duty to defend in some cases (still right to defend)
- defense cost included within the SIR is often referred to as first dollar defense
ultimate net loss (different ways to pay this- what the court says must be paid)
- all sums paid or payable in settlement
- all sums paid or payable as damages
coverage area
- worldwide or anywhere in universe, could also be limited
exclusions for excess and umbrella - Answer-- aircraft
- watercraft
- contractual liability
- liquor liability
- pollution
- damage to property
- damage to your work
- imparted property
- electronic data liability
- professional
- uninsured and underinsured motorists
- Employment related practices
layering options for excess liability and umbrella policies - Answer-1. single
2. layering
3. quota share
4. buffer layer
Identify common cyber exposures (LO1) - Answer-- data storage both active and at rest
- collection of private information on employees, clients, vendors, etc
- A website and or social media presence
- Access to the internet and integration, sharing or transmission of dates and/or
communications with others vita the internet
- E-commerce business transactions
- Credit card transactions
- E&O or professional liability
- Internet of Things
- Subject to State and Federal Laws
reasons for cyber coverage - Answer-- everyone uses the internet
- for those who have data in their CCC
- the policies are flexible
coverage for cyber includes assets and intellectual property
, Possible third party losses (not all covered by insurance) - Answer-- Unintended
disclosure of information
- Disclosure of incorrect or damaging information or information that could result in a
violation of privacy.
- Infringement of copyright, intellectual property rights, etc....
- Publications that slander, libel, or disparage
- Transmittal of a virus, malicious code, malware, ransom ware
- Access and disclosure by and unauthorized user
- Denial of service (DoS) attack or DDos (distributed denial of service)
- Programming errors
- Data entry errors
- Liability claims/lawsuits alleging violation of state, federal and other country statutes,
especially those associated with non-personally identifiable financial, health of other
sensitive information.
what are DOS and DDOS - Answer-DOS (denial of service)- attack from one source to
prevent access to computer system
DDOS (distributed denial of service)-attack from more than one source or/and more
than one location at the same time
Possible first part losses (not all covered by insurance) - Answer-- a security breach
typically results in costs/expenses to investigate the source
- virus can result in loss of or damage to electronic data
- ransomware infection
- unauthorized user could make an extortion demand (cyber extortion)
- malware then you have to clean the website
- unauthorized person can cause vandalism
- if personal or confidential files are breached, cost to notify affected parties
- security breaches that result in loss of income, expenses tot minimize a business
interruption, loss to income due to reputation
- theft of intellectual property
- computer fraud
- losses as a result of social engineering (voluntary party using a computer system)
- DOS or DDOS to a website or social media that results in loss of income
- costs due to mechanical breakdown and physical cause
Identify and apply the common exclusion or limitation in the ISO BOP policy. - Answer-
Electronic data is not covered property, except as provided under additional coverage.
Identify and Describe the type of cyber insurance coverage that are available for first
party losses (LO4) - Answer-1. Security Breach Expense
A. Typically includes the costs to notify affected parties and may also include the cost
to investigate the cause of a security break.
B. May also provide for other reasonable expenses sud as identify theft protections or
credit monitoring.
