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Questions and Answers
What is the primary purpose of an umbrella policy?
What is the primary purpose of an umbrella policy?
- To provide broader coverage for primary liability policies
- To extend the limits of commercial general liability, business auto, and employers liability coverage (correct)
- To replace primary coverage once the primary aggregate limits of liability have been exhausted
- To reduce the retention amount of primary policies
What is a key difference between an umbrella policy and an excess policy?
What is a key difference between an umbrella policy and an excess policy?
- The amount of retention required
- The provision of broader coverage for some risks (correct)
- The level of coverage provided
- The type of risks they cover
When do umbrella policies typically replace primary coverage?
When do umbrella policies typically replace primary coverage?
- When the primary aggregate limits of liability have been exhausted (correct)
- When the primary policy expires
- When the retention amount is met
- When a claim is made
What is the purpose of an excess policy?
What is the purpose of an excess policy?
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What is the term for the amount of money that must be paid by the insured before the umbrella policy kicks in?
What is the term for the amount of money that must be paid by the insured before the umbrella policy kicks in?
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