Which of the following statements about umbrella policies is NOT correct?

Which of the following statements about umbrella policies is NOT correct?


A) If the insured fails to keep the underlying coverage in force, the umbrella policy will not cover the amount of loss that would have been paid by the underlying policy.

B) They are written only for commercial risks.

C) They provide coverage above the limits of underlying policies.

D) Losses that are excluded by the underlying policy but covered by the umbrella are subject to the umbrella's retention limit.



Answer: They are written only for commercial risks.

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