CIC COMMERCIAL MULTI -LINE

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CIC COMMERCIAL MULTI -LINE

EXAM | QUESTIONS AND

CORRECT ANSWER S | LATEST

UPDATE | 100% PASS

Question : 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

• Provide primary coverage when underlying poliy does

not respond beacuse its aggregate limits of insruance are exhausted.

• Provide broader coverage than the exsiting underlying

insurance

Question : excess liability coverage forms and

commercial umbrella liability policy

CORRECT ANSWER : 1. follow forms

hella short

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"basically what underlying says but more money"

does NOT provide broader coverage

excess liability

own insuring agreement and stuff

could be the same, narrower, broader

commercial umbrella liability policy

own insuring agreement and stuff

broader coverage

Question : Define "Self-Insured Retention" (SIR) and

apply it (LO2)

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CORRECT 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

Question : Explain the importance of concurrent dates and

be able to provide solutions for non-concurrency situations (LO3)

CORRECT 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.

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The underlying limits must be unimpaired at the effective debate of the excess liability

Question : Describe the underlying insurance

requirements of excess liability/commercial umbrella policies and apply the in a practical applications.

(LO4)***

CORRECT 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

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