CIC- COMMERCIAL MULTILINE
EXAM 2024-2025 LATEST REAL
EXAM WITH ACTUAL NGN
QUESTIONS AND VERIFIED
WELL EXPLAINED 100%
CORRECT ANSWERS WITH
RATIONALES GRADED A+
LATEST UPDATE 2025 WITH
100% GUARANTEED SUCCESS
AFTER DOWNLOAD (ALL YOU
NEED TO PASS YOUR EXAMS
what does concurrent dates mean
-when policies have same effective dates and expiration dates
what does nonconcurrent dates mean
-when policies have different effective dates and expiration dates
, -may create a potential gap in coverage
explain the issues caused by nonconcurrent policy dates
-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
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
-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
-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
gratuitous bailment for the benefit of the bailor
-bailment where.... the bailee owes the bailor a low duty of care
-no true benefit to the bailee
EX: a restaurant coat check service
gratuitous bailment for the benefit of the bailee
-bailment where... the bailee owes the bailor a much higher duty of care
EX: bailee borrows a piece of equipment from neighbor (bailor), must exercise great care
bailment for mutual benefit of the bailor and bailee
-bailment where.... the bailee exercises a reasonably duty of care
, -this duty of care can be clarified, expanded, or limited in an oral or written contract
3 purposes of excess liability and commercial umbrella policies
1.) provide additional limits that are excess over those provided in the underlying policies of
insurance
2.)respond to losses when the aggregate limit of an underlying policy is reduced or exhausted
3) provide broader coverage than the underlying policies (only if it is a commercial umbrella
policy!)
3 types of excess liability policies
1. Follow form excess liability policy
2. Stand alone excess liability policy
3. Commercial umbrella liability policy
follow form excess liability policy
-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
-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
-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
-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)
-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
EX: . An appliance repair shop (the bailee) gets paid, and the owner of the appliance (the
bailor) gets back a working piece of equipment
standard of care in a bailment relationship
low duty of care (coat check at a restaurant)
higher duty of care (borrow a piece of equipment from a neighbor)
reasonable duty of care (an appliance repair shop working on a customer's equipment)
two common basis bailee is written on
1.) legal liability basis
2.) direct damage basis
legal liability basis (bailee)
-coverage applies only if the bailee is legally liable for the damage
-pays for damages to the property and any charges the bailee earned from the work performed
EXAM 2024-2025 LATEST REAL
EXAM WITH ACTUAL NGN
QUESTIONS AND VERIFIED
WELL EXPLAINED 100%
CORRECT ANSWERS WITH
RATIONALES GRADED A+
LATEST UPDATE 2025 WITH
100% GUARANTEED SUCCESS
AFTER DOWNLOAD (ALL YOU
NEED TO PASS YOUR EXAMS
what does concurrent dates mean
-when policies have same effective dates and expiration dates
what does nonconcurrent dates mean
-when policies have different effective dates and expiration dates
, -may create a potential gap in coverage
explain the issues caused by nonconcurrent policy dates
-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
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
-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
-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
gratuitous bailment for the benefit of the bailor
-bailment where.... the bailee owes the bailor a low duty of care
-no true benefit to the bailee
EX: a restaurant coat check service
gratuitous bailment for the benefit of the bailee
-bailment where... the bailee owes the bailor a much higher duty of care
EX: bailee borrows a piece of equipment from neighbor (bailor), must exercise great care
bailment for mutual benefit of the bailor and bailee
-bailment where.... the bailee exercises a reasonably duty of care
, -this duty of care can be clarified, expanded, or limited in an oral or written contract
3 purposes of excess liability and commercial umbrella policies
1.) provide additional limits that are excess over those provided in the underlying policies of
insurance
2.)respond to losses when the aggregate limit of an underlying policy is reduced or exhausted
3) provide broader coverage than the underlying policies (only if it is a commercial umbrella
policy!)
3 types of excess liability policies
1. Follow form excess liability policy
2. Stand alone excess liability policy
3. Commercial umbrella liability policy
follow form excess liability policy
-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
-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
-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
-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)
-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
EX: . An appliance repair shop (the bailee) gets paid, and the owner of the appliance (the
bailor) gets back a working piece of equipment
standard of care in a bailment relationship
low duty of care (coat check at a restaurant)
higher duty of care (borrow a piece of equipment from a neighbor)
reasonable duty of care (an appliance repair shop working on a customer's equipment)
two common basis bailee is written on
1.) legal liability basis
2.) direct damage basis
legal liability basis (bailee)
-coverage applies only if the bailee is legally liable for the damage
-pays for damages to the property and any charges the bailee earned from the work performed
