Term
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Definition
| Written over a primary policy to increase the overall amount of protection. It is written on a "following form" bases, which means that it only increases the overall limit of coverage; it does not broaden coverage. |
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Term
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Definition
| There are often considerable differences from one contract to another. |
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Term
| Commercial Umbrella Policy |
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Definition
| Known as blanket catastrophe excess liability coverage and are not standardized policy forms. |
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Term
Commercial Umbrella Insurance:
Excess Coverage |
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Definition
| Pays when the loss exceeds underlying primary limits. |
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Term
Commercial Umbrella Insurance:
Broad Coverage |
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Definition
| Covers liability exposures for which no underlying primary insurance is written, or for which the underlying primary policy contains an exclusion that is not excluded under the umbrella policy. |
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Term
Commercial Umbrella Insurance:
Automatic Replacement |
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Definition
| Replaces coverage for underlying liability policies when aggregate limits are impaired or exhausted by loss payment. |
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Term
| Commercial Umbrella Insurance |
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Definition
| Normally written on an occurrence basis and usually applies worldwide. |
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