CIC COMMERCIAL MULTILINE TESTS EXAM
2026 COMPLETE QUESTIONS AND ANSWERS
GRADED A+
◉ excess liability coverage forms and commercial umbrella liability
policy. Answer: 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). 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
◉ Explain the importance of concurrent dates and be able to provide
solutions for non-concurrency situations (LO3). 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.
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)***. 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
◉ Compare and contract the insuring agreement known as pay on
behalf and indemnify (LO5). Answer: 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
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. Answer: 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
◉ exclusions for excess and umbrella. Answer: - aircraft
- watercraft
- contractual liability
2026 COMPLETE QUESTIONS AND ANSWERS
GRADED A+
◉ excess liability coverage forms and commercial umbrella liability
policy. Answer: 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). 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
◉ Explain the importance of concurrent dates and be able to provide
solutions for non-concurrency situations (LO3). 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.
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)***. 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
◉ Compare and contract the insuring agreement known as pay on
behalf and indemnify (LO5). Answer: 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
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. Answer: 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
◉ exclusions for excess and umbrella. Answer: - aircraft
- watercraft
- contractual liability
