COMMERCIAL CASUALTY II UPDATED ACTUAL
HIGH-YIELD INSURANCE TOPICS SUMMARY
2026
◉ When working with your client to select the coverages needed for
his Workers' Compensation and Employers' Liability Insurance
Policy, you come to Item 3.B. of the Information Page. Which
statement best explains what this section triggers and how?
a. It triggers employers' liability coverage for only those states listed
in 3.B.
b. It triggers workers' compensation and employers' liability
coverage for all states listed in 3.B.
c. It triggers employers' liability coverage for those states listed in
3.A. for the limits that are shown for bodily injury by accident for
each accident, bodily injury by disease with a policy limit, and bodily
injury by disease for each employee.
d. It triggers workers' compensation benefits in the states listed in
3.A. and sets the limits for medical expenses, rehabilitation
expenses, and death/funeral expenses..
Answer: c. It triggers employers' liability coverage for those states
listed in 3.A. for the limits that are shown for bodily injury by
accident for each accident, bodily injury by disease with a policy
limit, and bodily injury by disease for each employee.
,◉ Your insured buys a Workers' Compensation Policy for coverage in
New York with NY listed in Item 3.A. Three months after the policy
effective date, your insured also begins work in New Jersey. New
Jersey is listed in Item 3.C. Which statement below is true about your
insured's workers' compensation coverage?
a. Your insured has coverage in New Jersey only after they notify the
insurer.
b. Your insured has no coverage in New Jersey since the state is not
listed in item 3.A. of the Information Page.
c. Your insured has automatic coverage in New Jersey for 90 days.
d. Your insured has automatic coverage in New Jersey as long as the
insurer is notified "at once" that work has begun there.
Answer: d. Your insured has automatic coverage in New Jersey as
long as the insurer is notified "at once" that work has begun there
◉ As you review his insurance needs, your client asks you about the
primary functions of an Umbrella Liability Policy. Which of the
following would not be used to answer his question?
a. It provides excess limits over underlying insurance.
b. It provides broader insurance protection than that provided by
underlying policies.
c. It replaces underlying insurance when aggregate limits have been
exhausted.
d. It replaces claims expenses incurred by the insured..
Answer: d. It replaces claims expenses incurred by the insured.
,◉ A self-insured retention can be explained to your client using
which of the following statements?
a. It applies only if coverage is provided by the Umbrella Liability
Policy but not by underlying policies, and it does not apply when
coverage is in excess of the underlying policy.
b. It applies only if defense is provided by the Umbrella Liability
Policy, but no payment for settlement will be made.
c. It applies every time a payment will be made by the Umbrella
Liability Policy, whether for settlement or for defense.
d. It applies for bodily injury claims only and does not apply to
property damage claims..
Answer: a. It applies only if coverage is provided by the Umbrella
Liability Policy but not by underlying policies, and it does not apply
when coverage is in excess of the underlying policy.
◉ This course describes different types of excess policies. The
description, "A follow form Excess Liability Policy that covers more
than one underlying policy such as CGL, BAP, and Employers'
Liability," is known as which of the following?
a. Multiple Umbrella Policy
b. Buffer Layer Excess Policy
c. Broader Excess Policy
d. Multiline Excess Policy.
Answer: d. Multiline Excess Policy
, ◉ Most Umbrella or Excess Liability policies contain a defined term,
"retained limit." When asked by your client, which of the following
statements would you use to provide a description of this term?
a. The amount that the umbrella carrier must receive as premium
payment before any claim will be considered
b. The maximum amount to be paid by the excess or umbrella
carrier in payment of a loss plus expenses
c. An amount that must be paid as a self-insured retention on every
umbrella or excess loss
d. An amount that must be met either through an underlying policy
limit payment or out-of-pocket amount (SIR) paid by the insured.
Answer: d. An amount that must be met either through an
underlying policy limit payment or out-of-pocket amount (SIR) paid
by the insured
◉ In Excess/Umbrella Liability policies, there are two situations
where an affirmative duty to defend should apply. One is when no
underlying insurer is obligated to defend because the damages are
not covered by the underlying insurer but are covered by the
excess/umbrella liability policy. Which of the following is the other?
a. When no underlying insurer has been identified
b. When the underlying insurer is obligated to defend but chooses
not to
HIGH-YIELD INSURANCE TOPICS SUMMARY
2026
◉ When working with your client to select the coverages needed for
his Workers' Compensation and Employers' Liability Insurance
Policy, you come to Item 3.B. of the Information Page. Which
statement best explains what this section triggers and how?
a. It triggers employers' liability coverage for only those states listed
in 3.B.
b. It triggers workers' compensation and employers' liability
coverage for all states listed in 3.B.
c. It triggers employers' liability coverage for those states listed in
3.A. for the limits that are shown for bodily injury by accident for
each accident, bodily injury by disease with a policy limit, and bodily
injury by disease for each employee.
d. It triggers workers' compensation benefits in the states listed in
3.A. and sets the limits for medical expenses, rehabilitation
expenses, and death/funeral expenses..
Answer: c. It triggers employers' liability coverage for those states
listed in 3.A. for the limits that are shown for bodily injury by
accident for each accident, bodily injury by disease with a policy
limit, and bodily injury by disease for each employee.
,◉ Your insured buys a Workers' Compensation Policy for coverage in
New York with NY listed in Item 3.A. Three months after the policy
effective date, your insured also begins work in New Jersey. New
Jersey is listed in Item 3.C. Which statement below is true about your
insured's workers' compensation coverage?
a. Your insured has coverage in New Jersey only after they notify the
insurer.
b. Your insured has no coverage in New Jersey since the state is not
listed in item 3.A. of the Information Page.
c. Your insured has automatic coverage in New Jersey for 90 days.
d. Your insured has automatic coverage in New Jersey as long as the
insurer is notified "at once" that work has begun there.
Answer: d. Your insured has automatic coverage in New Jersey as
long as the insurer is notified "at once" that work has begun there
◉ As you review his insurance needs, your client asks you about the
primary functions of an Umbrella Liability Policy. Which of the
following would not be used to answer his question?
a. It provides excess limits over underlying insurance.
b. It provides broader insurance protection than that provided by
underlying policies.
c. It replaces underlying insurance when aggregate limits have been
exhausted.
d. It replaces claims expenses incurred by the insured..
Answer: d. It replaces claims expenses incurred by the insured.
,◉ A self-insured retention can be explained to your client using
which of the following statements?
a. It applies only if coverage is provided by the Umbrella Liability
Policy but not by underlying policies, and it does not apply when
coverage is in excess of the underlying policy.
b. It applies only if defense is provided by the Umbrella Liability
Policy, but no payment for settlement will be made.
c. It applies every time a payment will be made by the Umbrella
Liability Policy, whether for settlement or for defense.
d. It applies for bodily injury claims only and does not apply to
property damage claims..
Answer: a. It applies only if coverage is provided by the Umbrella
Liability Policy but not by underlying policies, and it does not apply
when coverage is in excess of the underlying policy.
◉ This course describes different types of excess policies. The
description, "A follow form Excess Liability Policy that covers more
than one underlying policy such as CGL, BAP, and Employers'
Liability," is known as which of the following?
a. Multiple Umbrella Policy
b. Buffer Layer Excess Policy
c. Broader Excess Policy
d. Multiline Excess Policy.
Answer: d. Multiline Excess Policy
, ◉ Most Umbrella or Excess Liability policies contain a defined term,
"retained limit." When asked by your client, which of the following
statements would you use to provide a description of this term?
a. The amount that the umbrella carrier must receive as premium
payment before any claim will be considered
b. The maximum amount to be paid by the excess or umbrella
carrier in payment of a loss plus expenses
c. An amount that must be paid as a self-insured retention on every
umbrella or excess loss
d. An amount that must be met either through an underlying policy
limit payment or out-of-pocket amount (SIR) paid by the insured.
Answer: d. An amount that must be met either through an
underlying policy limit payment or out-of-pocket amount (SIR) paid
by the insured
◉ In Excess/Umbrella Liability policies, there are two situations
where an affirmative duty to defend should apply. One is when no
underlying insurer is obligated to defend because the damages are
not covered by the underlying insurer but are covered by the
excess/umbrella liability policy. Which of the following is the other?
a. When no underlying insurer has been identified
b. When the underlying insurer is obligated to defend but chooses
not to
