CPCU 552 Flashcards – Module 10

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[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.

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