AINS Quiz | 713 Questions with 100 % correct
answers | Verified& Updated 2024 Graded A+
Umbrella liability policies almost always provide excess coverage over several primary policies
while include all of the following, EXCEPT:
- Commercial general liability
- Auto liability
- Replacement liability
- Employers liability - ✔✔Replacement liability
The coverage that an umbrella liability policy provides for claims not covered at all by the
underlying policies is called - ✔✔Drop-down coverage
Which one of the following statements about umbrella liability insurance is true?
Select one:
A. It becomes void when the primary aggregate limits are exhausted.
B. It may contain exclusions more restrictive than those found in the primary policies.
C. It is normally written as excess insurance only above a comprehensive general liability policy.
D. It fills the gaps in primary insurance rather than providing additional coverage. - ✔✔B. It may
contain exclusions more restrictive than those found in the primary policies
*Umbrella ins provides additional limits above the insured's primary policies
,Which one of the following elements would you find in the Conditions of an umbrella liability
insurance policy?
Select one:
A. Maintenance of underlying insurance condition
B. Coverage triggers condition
C. Restrictions on coverages beyond what may appear on underlying policies condition
D. Self-insured retention condition - ✔✔A. Maintenance of underlying insurance condition
The self-insured retention in an umbrella liability policy applies under which one of the
following circumstances? - ✔✔An underlying policy does not cover the claim
A self-insured retention (SIR) in an umbrella liability policy is which one of the following? -
✔✔An amount that is deducted from claims that are payable under an umbrella liability policy
and that are NOT covered at all by any primary policy
Which one of the following statements is correct regarding the maintenance of underlying
insurance condition of an umbrella liability insurance policy if the underlying insurance is not
kept in force? - ✔✔The umbrella policy would cover claims that exceed the limits of the
underlying policies as if they had been kept in force
*NOT subject to a self-insured retention (SIR)
Which one of the following is a type of excess insurance that is broader than ordinary excess
liability insurance? - ✔✔Umbrella policy
,An umbrella liability policy performs which one of the following basic functions? - ✔✔It
provides additional limits above the each occurrence limits of the insured's primary policies
Which one of the following statements is correct regarding the maintenance of underlying
insurance condition of an umbrella liability insurance policy? - ✔✔The condition obligates the
INSURED to monitor the required underlying coverages to ensure that they remain in force
Drop-down coverage in an umbrella liability policy is provided for claims that are which one of
the following? - ✔✔Not covered by an underlying policy, INCLUDING claims not covered due
to the depletion of the underlying policy's aggregate limits
Some umbrella policies combine an excess policy and an umbrella policy in one policy, using the
letters "A" and "B." A and B refer to the - ✔✔Insuring Agreements
An umbrella liability policy differs from an ordinary excess liability policy in that an umbrella
liability policy almost always provides which one of the following? - ✔✔Excess coverage over
several primary policies
An excess liability policy covers a liability loss that exceeds the underlying limits only if the loss
is covered by the underlying insurance. What type of excess liability policy is this? -
✔✔Following-form policy
, Which one of the following statements is correct regarding aggregate umbrella liability insurance
limits? - ✔✔Almost all umbrella policies contain aggregate limits that operate like the aggregate
limits in the primary insurance
The term "umbrella liability" is generally used to describe a type of excess insurance that is
which one of the following? - ✔✔Broader in coverage than ordinary excess liability policies
Which one of the following is a form of excess liability coverage?
Select one:
A. A maximum-possible-loss policy
B. A coinsurance policy
C. A self-contained policy
D. A primary policy - ✔✔A self-contained policy
An excess policy that applies to a loss that exceeds the underlying policy limits only if the loss is
specifically covered under the terms of the excess policy is known as a - ✔✔Self-contained
policy
*It is subject to only its own terms, so the loss must be specifically covered by the policy to
apply
Which one of the following statements is correct with respect to the exclusions of an umbrella
liability insurance policy? - ✔✔An umbrella policy can use exclusions to broaden or narrow
exclusions found in the underlying policies
answers | Verified& Updated 2024 Graded A+
Umbrella liability policies almost always provide excess coverage over several primary policies
while include all of the following, EXCEPT:
- Commercial general liability
- Auto liability
- Replacement liability
- Employers liability - ✔✔Replacement liability
The coverage that an umbrella liability policy provides for claims not covered at all by the
underlying policies is called - ✔✔Drop-down coverage
Which one of the following statements about umbrella liability insurance is true?
Select one:
A. It becomes void when the primary aggregate limits are exhausted.
B. It may contain exclusions more restrictive than those found in the primary policies.
C. It is normally written as excess insurance only above a comprehensive general liability policy.
D. It fills the gaps in primary insurance rather than providing additional coverage. - ✔✔B. It may
contain exclusions more restrictive than those found in the primary policies
*Umbrella ins provides additional limits above the insured's primary policies
,Which one of the following elements would you find in the Conditions of an umbrella liability
insurance policy?
Select one:
A. Maintenance of underlying insurance condition
B. Coverage triggers condition
C. Restrictions on coverages beyond what may appear on underlying policies condition
D. Self-insured retention condition - ✔✔A. Maintenance of underlying insurance condition
The self-insured retention in an umbrella liability policy applies under which one of the
following circumstances? - ✔✔An underlying policy does not cover the claim
A self-insured retention (SIR) in an umbrella liability policy is which one of the following? -
✔✔An amount that is deducted from claims that are payable under an umbrella liability policy
and that are NOT covered at all by any primary policy
Which one of the following statements is correct regarding the maintenance of underlying
insurance condition of an umbrella liability insurance policy if the underlying insurance is not
kept in force? - ✔✔The umbrella policy would cover claims that exceed the limits of the
underlying policies as if they had been kept in force
*NOT subject to a self-insured retention (SIR)
Which one of the following is a type of excess insurance that is broader than ordinary excess
liability insurance? - ✔✔Umbrella policy
,An umbrella liability policy performs which one of the following basic functions? - ✔✔It
provides additional limits above the each occurrence limits of the insured's primary policies
Which one of the following statements is correct regarding the maintenance of underlying
insurance condition of an umbrella liability insurance policy? - ✔✔The condition obligates the
INSURED to monitor the required underlying coverages to ensure that they remain in force
Drop-down coverage in an umbrella liability policy is provided for claims that are which one of
the following? - ✔✔Not covered by an underlying policy, INCLUDING claims not covered due
to the depletion of the underlying policy's aggregate limits
Some umbrella policies combine an excess policy and an umbrella policy in one policy, using the
letters "A" and "B." A and B refer to the - ✔✔Insuring Agreements
An umbrella liability policy differs from an ordinary excess liability policy in that an umbrella
liability policy almost always provides which one of the following? - ✔✔Excess coverage over
several primary policies
An excess liability policy covers a liability loss that exceeds the underlying limits only if the loss
is covered by the underlying insurance. What type of excess liability policy is this? -
✔✔Following-form policy
, Which one of the following statements is correct regarding aggregate umbrella liability insurance
limits? - ✔✔Almost all umbrella policies contain aggregate limits that operate like the aggregate
limits in the primary insurance
The term "umbrella liability" is generally used to describe a type of excess insurance that is
which one of the following? - ✔✔Broader in coverage than ordinary excess liability policies
Which one of the following is a form of excess liability coverage?
Select one:
A. A maximum-possible-loss policy
B. A coinsurance policy
C. A self-contained policy
D. A primary policy - ✔✔A self-contained policy
An excess policy that applies to a loss that exceeds the underlying policy limits only if the loss is
specifically covered under the terms of the excess policy is known as a - ✔✔Self-contained
policy
*It is subject to only its own terms, so the loss must be specifically covered by the policy to
apply
Which one of the following statements is correct with respect to the exclusions of an umbrella
liability insurance policy? - ✔✔An umbrella policy can use exclusions to broaden or narrow
exclusions found in the underlying policies
