All the Following Are True of Business Liability Umbrella Policies

question 18

Multiple Choice

All the following are true of business liability umbrella policies except:

• A) always requires the insured to maintain certain minimum amounts of underlying liability insurance coverage
• B) it provides coverage after the underlying liability policies have been exhausted
• C) is often called excess liability coverage
• D) pays only for losses in excess of the underlying limits

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Definitions:

P-Value

Represents the probability that the observed data would occur by chance in a hypothesis test, used to infer the significance of experimental results.

Poisson Distribution

A statistical distribution predicting the probability of a given number of events happening in a fixed interval of time or space.

Observed Frequencies

The actual number of occurrences of events measured or recorded during a study or experiment.

Normal Distribution

A symmetric bell-shaped frequency distribution that is fully defined by its mean and standard deviation.