Which of the following statements is true with regard to umbrella insurance?

Question

Quizplus · Accepted Answer

Umbrella insurance is designed to provide additional liability coverage beyond the limits of underlying insurance policies, such as auto or homeowners insurance. It is only paid if the limits on other insurance policies have been exceeded. Therefore, option D is the correct statement. Option A is incorrect, as umbrella insurance is specifically used for liability coverage. Option B is incorrect, as umbrella insurance is typically purchased in addition to underlying insurance policies. Option C is incorrect, as umbrella insurance is often used in combination with other insurance policies to provide comprehensive coverage.

Which of the Following Statements Is True with Regard to Umbrella