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

question 30

Multiple Choice

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.

• A)I only
• B)II only
• C)Both I and II
• D)Neither I nor II

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Definitions:

Industry Expands

The process of a sector in the economy growing due to an increase in demand, production, and often, employment.

Allocative Efficiency

A state of the economy where the distribution of resources among different uses is optimal, ensuring that the goods being produced are what consumers prefer the most.

Producing Output

The process of generating goods or services as the result of economic activity.

Additional Unit

The next unit of product or service that could be produced or acquired.