Which of the following statements about a typical personal umbrella policy is (are)true?
I.Losses covered under the basic underlying policies are paid on a pro rata basis by the umbrella policy.
II.Losses not covered by the basic underlying contracts are subject to a self-insured retention which typically is at least $25,000.

Question

Quizplus · Accepted Answer

A typical personal umbrella policy does not pay losses on a pro rata basis with underlying policies; it provides excess coverage. Also, the self-insured retention for losses not covered by underlying policies is usually much lower than $25,000.

Which of the Following Statements About a Typical Personal Umbrella