Question 1 1 pts A personal umbrella policy provides coverage for defense. Defen

Question

Question 1

1 pts

A personal umbrella policy provides coverage for defense. Defense costs are

usually paid:

1. Equally by the underlying policy and the umbrella policy.

2. By the personal umbrella policy only when the loss is not covered by

an underlying policy.

3. As part of the total loss, subject to the policy limit.

4. In addition to the umbrella policy's liability limit.

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Question 2

1 pts

Which one of the following is an example of a property loss that might arise

from the ownership of a personal watercraft?

1. An uninsured jet ski runs into the swimmer injuring the swimmer.

2. While water skiing a guest is injured when he becomes tangled in the

tow line.

3. The boat owner's son is cited for exceeding speed limitations in a

protected waterway.

4. The boat owner drives the boat into shallow water and hits a rock,

punching a hole in the hull.

1. Equally by the underlying policy and the umbrella policy.

2. By the personal umbrella policy only when the loss is not covered by

an underlying policy.

3. As part of the total loss, subject to the policy limit.

4. In addition to the umbrella policy's liability limit.

Explanation / Answer

Question 1-

A personal umbrella policy provides coverage for defense. Defense costs are usually paid in addition to the umbrella policy's liability limit.

In a personal umbrella poilcy the underlying insurer has a duty to to defend an insured with the cost of defense paid by the underlying insurance in addition to the policy limit. The cost is covered in addition to the umbrella policy's liability limit.

Question 2-

Example of of a property loss that might arise from the ownership of a personal aircraft - The Boat owner drives into shallow water and hits a rock, punching a hole in the hull

The propery in the question is the boat and the loss happening is hold in the hull due to hitting the rock. Thus 4th option is a property loss.

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