Which of the Following Statements About a Typical Personal Umbrella

question 21

Multiple Choice

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.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Highly Specialized Economy

An economy focusing on the development and production of specific goods or services, utilizing advanced technology or unique skills for efficiency.

Self-Sufficiency

The ability to fulfill all of one's needs without external assistance.

Merchandise Trade Balance

The difference between a country's exports and imports of tangible goods.

Services Trade Balance

The difference between exports and imports of services of a country, reflecting whether a country is a net provider or consumer of services internationally.