CIC- Commercial Multiline EXAM |
100% COMPLETE QUESTIONS AND CORRECT
DETAILED ANSWERS 2025/2026 (VERIFIED ANSWERS) |
ALREADY GRADED A+
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!)
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)
3 types of excess liability policies –
1. Follow form excess liability policy
2. Stand alone excess liability policy
3. Commercial umbrella liability policy
,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)
-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
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
******LIKELY NOT ON EXAM***Provide a few examples of when coverage on CUMB is broader - -
Nonowned 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.
, 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
100% COMPLETE QUESTIONS AND CORRECT
DETAILED ANSWERS 2025/2026 (VERIFIED ANSWERS) |
ALREADY GRADED A+
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!)
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)
3 types of excess liability policies –
1. Follow form excess liability policy
2. Stand alone excess liability policy
3. Commercial umbrella liability policy
,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)
-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
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
******LIKELY NOT ON EXAM***Provide a few examples of when coverage on CUMB is broader - -
Nonowned 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.
, 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
