Arkansas Insurance Adjuster Practice Exam

Which policy might help cover the liability exceeding the policy limits in the accident caused by Jane?

1. Excess liability policy

2. Commercial general liability policy

3. Business owners policy

4. Extended liability policy

The correct answer is: Excess liability policy

An excess liability policy, also known as an umbrella policy, provides an additional layer of coverage beyond the limits of a primary policy. In this case, an excess liability policy would help cover any liability that exceeds the policy limits of Jane's primary policy. Option B, a commercial general liability policy, may cover a business's liability for certain types of accidents. However, it may not provide enough coverage for Jane's specific situation. Option C, a business owners policy, typically combines general liability insurance with property insurance to cover liability and property damage for certain types of businesses. It may not provide enough coverage for Jane's liability exceeding the policy limits. Option D, an extended liability policy, is not a commonly used term in insurance and may not be a valid or comprehensive coverage option for Jane's accident. It is important to carefully review and understand the terms and coverage of any policy before choosing it to cover liability.