CIC Commercial Multiline Exam Study Guide

CIC Commercial Multiline Exam Study Guide Identify and describe the three primary purposes of excess liability/umbrella policies (LO1) - 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 - 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 EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED. FIRST PUBLISH OCTOBER 2024. Page 2/52 - broader coverage Define "Self-Insured Retention" (SIR) and apply it (LO2) - Answer-SIR is the dolllar amount listed in the declarations paid by the named insured before the excess insurance becomes applicable Applies only when the excess policy provide broader insurance protection Does not apply when the umbrella drops down over exhausted limits or when exceee over underlying limits. SIR may be written per occurrence or policy period basis 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 EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED. FIRST PUBLISH OCTOBER 2024. Page 3/52 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 EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED. FIRST PUBLISH OCTOBER 2024. Page 4/52 - 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 EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED. FIRST PUBLISH OCTOBER 2024. Page 5/52 - 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 EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED. FIRST PUBLISH OCTOBER 2024. Page 6/52 - 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 informatio