CPCU 553, Chapter 8 Exam Questions and Answers | Verified & Updated | 100% Correct

CPCU 553, Chapter 8 Exam Questions and Answers | Verified & Updated | 100% Correct Ming purchased a 24-foot inboard motorboat and would like to cover it using special form ("all- risks") coverage. Which one of the following types of policies is Ming most likely to purchase? - Answer ️️ -Small boat policies are designed to cover boats up to a certain maximum size (such as 26-feet in length) and can be written to provide special form ("all-risks") coverage. Felipe has an unendorsed HO-3—Special Form (HO-3) with a $300,000 limit for liability coverage. He also has an umbrella policy with a $1,000,000 limit of liability and a $2,000 self- insured retention (SIR). While playing golf, Felipe accidentally injures his golfing partner while swinging a golf club. His partner is partially disabled, and Felipe is found liable for $450,000. How much will Felipe's umbrella policy pay for this loss? - Answer ️️ -Felipe's umbrella policy pays the difference between the total loss amount and the liability limit of the HO-3 policy. The SIR does not apply. All of the following usually are excluded by a personal umbrella policy, EXCEPT - Answer ️️ -Bodily injury Ian owns a sailboat and insures it under a small boat policy with a $300,000 limit for liability coverage. Ian also has a personal umbrella policy with a $2,000,000 limit of liability. The umbrella policy requires that any underlying watercraft liability policies have a minimum liability limit of $500,000. Ian's sailboat collides with another vessel, damaging its hull and injuring its passengers. The loss totals $1,100,000. How much will Ian's personal umbrella insurer pay for the loss? - Answer ️️ -$600,000 Even though Ian failed to maintain the $500,000 underlying limit, his personal umbrella insurer will pay no more than it would have paid if Ian had a $500,000 underlying limit