[h] CPCU 552 – Module 10
[q] Excess liability policy
[a] A policy that covers liability claims in excess of the limits of an underlying policy.
[q] Umbrella liability policy
[a] A type of excess liability policy that provides additional coverage limits and also provides coverage not available in the underlying coverages.
[q] Following-form excess liability policy
[a] An excess liability policy that covers a claim in excess of the underlying limits only if the loss is covered by the underlying insurance.
[q] Self-contained excess liability policy
[a] An excess liability policy that covers losses per the terms of the excess policy and does not depend on the provisions of the underlying policy.
[q] Specific excess liability policy
[a] An excess liability policy that requires the insured to retain a stipulated amount of loss from the first dollar for all losses resulting from each single occurrence. The insurer then pays losses from that occurrence in excess of the retention.
[q] Aggregate excess liability policy
[a] An excess liability policy that requires the insured to retain a specified amount of loss from the first dollar during a specified period of time.
[q] Self-insured retention
[a] An amount specified in an insurance policy that the insured must pay before the insurer will make a payment.
[q] Drop-down coverage
[a] Coverage provided by many umbrella liability policies for claims not covered at all by the underlying policies.
[q] Aggregate umbrella limit
[a] A provision contained in virtually every umbrella liability policy.
[q] Occurrence coverage trigger
[a] The event that triggers coverage under an occurrence coverage form: injury or damage that occurs during the policy period.
[q] Maintenance of underlying insurance condition
[a] A condition of an umbrella liability policy that obligates the insured to maintain all required underlying coverages in force during the policy period.
[q] Umbrella policy coverage territory
[a] In general, the policy provides worldwide coverage.
[q] Working layers
[a] Layers of coverage in an insurance program that are most often called on to pay claims. Represent both the primary and working layers of coverage.
[q] Buffer layer
[a] A level of excess insurance coverage between a primary layer and an umbrella policy.