2
CIC Commercial Multiline Exam with accurate detailed solutions
|| || || || || || ||
Identify and describe the three primary purposes of excess liability/umbrella policies (LO1) -
|| || || || || || || || || || || || ||
✔✔1. Provide additional limits that are excess over underlying limits of insurance
|| || || || || || || || || || ||
2. Provide primary coverage when underlying policy does not respond because its aggregate
|| || || || || || || || || || || || ||
limits of insurance are exhausted.
|| || || || ||
3. Provide broader coverage than the existing underlying insurance
|| || || || || || || ||
excess liability coverage forms and commercial umbrella liability policy - ✔✔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
|| || || || ||
- broader coverage
|| ||
Define "Self-Insured Retention" (SIR) and apply it (LO2) - ✔✔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
|| || || || || || || || || ||
,2
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) - ✔✔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)*** - ✔✔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
|| || || || || || || || || || || || || || ||
Compare and contract the insuring agreement known as pay on behalf and indemnify (LO5)
|| || || || || || || || || || || || || ||
- ✔✔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
|| || || || || || || || || || || || || ||
,2
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 - ✔✔damages
|| || || || || ||
- follow form follows underlying
|| || || ||
- 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
|| || || || || || || || ||
, 2
exclusions for excess and umbrella - ✔✔- aircraft
|| || || || || || ||
- watercraft
||
- contractual liability
|| ||
- liquor liability
|| || ||
- pollution
||
- 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 - ✔✔1. single
|| || || || || || || || || || ||
2. layering
||
3. quota share
|| ||
4. buffer layer
|| ||
Identify common cyber exposures (LO1) - ✔✔- 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
|| || || || ||
CIC Commercial Multiline Exam with accurate detailed solutions
|| || || || || || ||
Identify and describe the three primary purposes of excess liability/umbrella policies (LO1) -
|| || || || || || || || || || || || ||
✔✔1. Provide additional limits that are excess over underlying limits of insurance
|| || || || || || || || || || ||
2. Provide primary coverage when underlying policy does not respond because its aggregate
|| || || || || || || || || || || || ||
limits of insurance are exhausted.
|| || || || ||
3. Provide broader coverage than the existing underlying insurance
|| || || || || || || ||
excess liability coverage forms and commercial umbrella liability policy - ✔✔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
|| || || || ||
- broader coverage
|| ||
Define "Self-Insured Retention" (SIR) and apply it (LO2) - ✔✔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
|| || || || || || || || || ||
,2
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) - ✔✔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)*** - ✔✔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
|| || || || || || || || || || || || || || ||
Compare and contract the insuring agreement known as pay on behalf and indemnify (LO5)
|| || || || || || || || || || || || || ||
- ✔✔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
|| || || || || || || || || || || || || ||
,2
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 - ✔✔damages
|| || || || || ||
- follow form follows underlying
|| || || ||
- 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
|| || || || || || || || ||
, 2
exclusions for excess and umbrella - ✔✔- aircraft
|| || || || || || ||
- watercraft
||
- contractual liability
|| ||
- liquor liability
|| || ||
- pollution
||
- 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 - ✔✔1. single
|| || || || || || || || || || ||
2. layering
||
3. quota share
|| ||
4. buffer layer
|| ||
Identify common cyber exposures (LO1) - ✔✔- 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
|| || || || ||
