Umbrella 101

[iiinycboi]

if a claim was made 5 years ago and the insurance then was 5million liability fast forward today. claim is still open but about to close. now which insurance pays the claim? also if the insurance now is only 1 million what happens?

Also if insured has umbrella now but 5 years ago if the claim is over 5million will umbrella kick in?

 

[Guest]

Come on man, you should know this...

Whatever was in effect on the date of the claim......

 

[djs]

There are 2 options on claims (and RBA should know this as well). Claims made or occurance basis.

Occurance basis is when the incident occured, whatever was in force at that time. Most personal lines policies are this way. Has nothing to do with when the claim was filed, but the date of the car accident itself. You can't have an accident today, get a policy tomorrow and then file a claim the next day to have it cover the accident. Its what was in force the day the occurence happened.

Claims made - your E&O policy is probably this way. It's what was in force when the claim was made. This is used for policies (like E&O) where the occurance may not be easily established, but the claim date is easy. Claims made usually has a date that they will go back to, either the effective date of the policy, or, if no lapse, the date of previous coverage (with a max time).

So for your question, odds are, the coverages will be what was in force at the time of loss.

Dan

 

[Guest]

DJ, Your right, you got me, My mind went straight to PL, not CL....

You sir, are the Jedi....LOL

 

[djs]

I knew you knew it, just sometimes we type faster than our brains think....

 

[Guest]

I knew you knew it, just sometimes we type faster than our brains think....

True, My mind usually always jumps to PL, unless someone specifically says CL..........

 

[iiinycboi]

ah i actually knew the answer once i remembered about occurrence and claims made.

thanks though i had a brain freeze for a minute

 

[Guest]

ah i actually knew the answer once i remembered about occurrence and claims made.

thanks though i had a brain freeze for a minute

Insurance agents dont like to think much......

 

[Aram Fingal]

That's what producers and assistants are for, so we can golf. (although actually I prefer that trap range)

Insurance agents dont like to think much......