Which of the following statements is (are)true concerning the self-insured retention (SIR)under a commercial umbrella liability policy?
I.The SIR applies to claims covered by the umbrella policy but not by any underlying insurance.
II.The SIR only applies to those claims for which the underlying policy has paid first,and the umbrella policy is paying on an excess basis.

Question

Quizplus · Accepted Answer

The SIR under a commercial umbrella liability policy applies to claims that are covered by the umbrella policy but not by any underlying insurance, meaning it is the amount the insured must pay out-of-pocket before the umbrella coverage begins. This does not necessarily mean the underlying policy has to pay first for the SIR to apply; it specifically applies to situations where the umbrella policy is providing primary coverage because the claim is not covered by any underlying policy.

Which of the Following Statements Is (Are)true Concerning the Self-Insured