CIC COMMERCIAL MULTILINE TESTS EXAM
2026 COMPREHENSIVE QUESTIONS AND FULL
SOLUTION
◉ 3 types of excess liability policies. Answer: 1. Follow form excess
liability policy
2. Stand alone excess liability policy
3. Commercial umbrella liability policy
◉ follow form excess liability policy. Answer: -excess liability
policies that mirror the terms and
conditions of the underlying coverage form or forms
-provide additional limits excess over one or more underlying
policies
-they do not provide broader coverage
-could provide less coverage (i.e. commercial auto and pollution
exclusion example)
◉ stand alone excess liability policy. Answer: -excess liability
policies that have their own insuring agreements and terms and
conditions which are separate from those of the underlying policies
-coverage could be broader, narrower, or similar to the underlying
broader- could be worldwide
,narrower- absolute pollution exclusion
◉ commercial umbrella liability policy. Answer: -excess liability
policy that has its own insuring agreements/terms/conditions that
will vary from those in the underlying policies
-coverage will always be equal to or greater than what's "underneath
it"
-will never be more restrictive
-only excess liability policy that can drop down to become primary
coverage when there is no coverage on the underlying (subject to
SIR)
◉ ******LIKELY NOT ON EXAM***Provide a few examples of when
coverage on CUMB is broader. Answer: -Non-owned watercraft:
Coverage in the commercial
umbrella may be expanded to include vessels less than 50 or 55 feet.
-Coverage territory: The commercial umbrella may provide coverage
worldwide or anywhere in the universe
-Expected or intended injury exclusion: The reasonable force
exception may be expanded to apply to property damage losses
and/or may apply to auto losses
-Definition of bodily injury: Some commercial umbrellas include
mental anguish and mental injury.
-Non-owned aircraft: Coverage may be expanded to include
,non-owned aircraft chartered with a crew.
◉ explain the term self insured retention (SIR). Answer: -a listed
dollar amount on the CUMB dec page
-the amount the named insured is responsible for when the
commercial umbrella provides coverage that is broader than the
underlying policies and responds as primary coverage
◉ what does concurrent dates mean. Answer: -when policies have
same effective dates and expiration dates
◉ what does nonconcurrent dates mean. Answer: -when policies
have different effective dates and expiration dates
-may create a potential gap in coverage
◉ explain the issues caused by nonconcurrent policy dates. Answer:
-insured could have to pay some portion of the claim before the
excess/umb kicks in
-unimpaired aggregate issue: some policy language requires the
limits of the underlying policies to be unimpaired as of the effective
date of the excess liability policy (requires full limits be available at
the inception of the excess liability policy)
, ◉ how to solve non-concurrency issues. Answer: 1) underlying
policies can be cancelled and rewritten so all policies have
concurrent dates
2) there are non-concurrency endorsements that can be added
3) non-concurrency language can be added that would remove
concurrency requirements
3a.) excess liability can be written to short term expire with the
underlying
◉ define dual insuring agreements. Answer: -coverage is divided
into two parts with separate (two) insuring agreements and
exclusions
-bifurcated forms
i.e in ISO #1 BI/PD #2 personal injury and advertising injury
-each
◉ bailment. Answer: -a relationship where one party (the bailee)
accepts property of another (the bailor) for a particular purpose
-expectation that the property will be returned by the bailee to the
bailor in the same or better condition
-creates an obligation for the bailee to act in good faith to ensure the
"contract" terms are met
2026 COMPREHENSIVE QUESTIONS AND FULL
SOLUTION
◉ 3 types of excess liability policies. Answer: 1. Follow form excess
liability policy
2. Stand alone excess liability policy
3. Commercial umbrella liability policy
◉ follow form excess liability policy. Answer: -excess liability
policies that mirror the terms and
conditions of the underlying coverage form or forms
-provide additional limits excess over one or more underlying
policies
-they do not provide broader coverage
-could provide less coverage (i.e. commercial auto and pollution
exclusion example)
◉ stand alone excess liability policy. Answer: -excess liability
policies that have their own insuring agreements and terms and
conditions which are separate from those of the underlying policies
-coverage could be broader, narrower, or similar to the underlying
broader- could be worldwide
,narrower- absolute pollution exclusion
◉ commercial umbrella liability policy. Answer: -excess liability
policy that has its own insuring agreements/terms/conditions that
will vary from those in the underlying policies
-coverage will always be equal to or greater than what's "underneath
it"
-will never be more restrictive
-only excess liability policy that can drop down to become primary
coverage when there is no coverage on the underlying (subject to
SIR)
◉ ******LIKELY NOT ON EXAM***Provide a few examples of when
coverage on CUMB is broader. Answer: -Non-owned watercraft:
Coverage in the commercial
umbrella may be expanded to include vessels less than 50 or 55 feet.
-Coverage territory: The commercial umbrella may provide coverage
worldwide or anywhere in the universe
-Expected or intended injury exclusion: The reasonable force
exception may be expanded to apply to property damage losses
and/or may apply to auto losses
-Definition of bodily injury: Some commercial umbrellas include
mental anguish and mental injury.
-Non-owned aircraft: Coverage may be expanded to include
,non-owned aircraft chartered with a crew.
◉ explain the term self insured retention (SIR). Answer: -a listed
dollar amount on the CUMB dec page
-the amount the named insured is responsible for when the
commercial umbrella provides coverage that is broader than the
underlying policies and responds as primary coverage
◉ what does concurrent dates mean. Answer: -when policies have
same effective dates and expiration dates
◉ what does nonconcurrent dates mean. Answer: -when policies
have different effective dates and expiration dates
-may create a potential gap in coverage
◉ explain the issues caused by nonconcurrent policy dates. Answer:
-insured could have to pay some portion of the claim before the
excess/umb kicks in
-unimpaired aggregate issue: some policy language requires the
limits of the underlying policies to be unimpaired as of the effective
date of the excess liability policy (requires full limits be available at
the inception of the excess liability policy)
, ◉ how to solve non-concurrency issues. Answer: 1) underlying
policies can be cancelled and rewritten so all policies have
concurrent dates
2) there are non-concurrency endorsements that can be added
3) non-concurrency language can be added that would remove
concurrency requirements
3a.) excess liability can be written to short term expire with the
underlying
◉ define dual insuring agreements. Answer: -coverage is divided
into two parts with separate (two) insuring agreements and
exclusions
-bifurcated forms
i.e in ISO #1 BI/PD #2 personal injury and advertising injury
-each
◉ bailment. Answer: -a relationship where one party (the bailee)
accepts property of another (the bailor) for a particular purpose
-expectation that the property will be returned by the bailee to the
bailor in the same or better condition
-creates an obligation for the bailee to act in good faith to ensure the
"contract" terms are met
