Arkansas Insurance Adjuster Practice Exam 2025 – Comprehensive All-in-One Guide to Exam Success

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What BEST describes the 'Follow Form' in excess liability coverage?

Excess liability insurance that 'follows' the base insurance policy to the letter

'Follow Form' in excess liability coverage refers to a type of insurance that provides additional coverage beyond the base policy. Option B is incorrect because it refers to a particular insurance form and not the concept of 'follow form'. Option C is incorrect because it mentions coverage of more risks, but doesn't specify what kind of risks. Option D is incorrect because it mentions limitations and exclusions which are not relevant to the definition of 'follow form'. Therefore, option A is the best answer as it accurately describes the concept of 'follow form' in excess liability coverage.

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Insurance coverage written on the Standard Liability Insurance Form by NAIC

Excess liability insurance covering more risks than the base policy

Excess liability insurance that 'follows' the base policy, but includes its own limitations and exclusions

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