CIC Commercial Multiline Exam questions with correct answers

Identify and describe the three primary purposes of excess liability/umbrella policies (LO1) CORRECT ANSWER-1. Provide additional limits that are excess over underlying limits of insurance 2. Provide primary coverage when underlying poliy does not respond beacuse its aggregate limits of insruance are exhausted. 3. Provide broader coverage than the exsiting underlying insurance excess liability coverage forms and commercial umbrella liability policy CORRECT ANSWER-1. follow forms - hella short - "basically what underlying says but more money" - does NOT provide broader coverage 2. excess liability - own insuring agreement and stuff - could be the same, narrower, broader 3. commercial umbrella liability policy - own insuring agreement and stuff - broader coverage Define "Self-Insured Retention" (SIR) and apply it (LO2) CORRECT ANSWER-SIR is the dolllar amount listed in the declarations paid by the named insured before the excess insurance becomes applicable