Answer Happy

Which one of the following is the reason why
the underwriter of a personal umbrella liability policy must
assess the financial stability of the insurer writing the
underlying coverages?
A. Because the umbrella insurer would be subject to fines
and assessments if the underlying insurer becomes insolvent.
B. Because the umbrella insurer must assume the defense of a
claim if the underlying insurer cannot
C. Because the umbrella insurer would be exposed to an error and
omissions suit if the underlying insurer becomes insolvent.
D. Because the umbrella insurer would drop down and provide
first dollar coverage if the underlying insurer cannot