Florida Insurance Licensing Practice Exam

What is the amount called that must be paid by the insured before the Umbrella Policy will pay when the Umbrella is PRIMARY?

1. The self-insured retention

2. The deductible

3. The co-payment

4. The premium

The correct answer is: The self-insured retention

The amount that must be paid by the insured before an Umbrella Policy will provide coverage is known as the self-insured retention. This is required when the Umbrella Policy is the primary insurance, meaning it has to be exhausted first before other insurance policies can provide coverage. The other options, including deductibles, co-payments, and premiums, are all associated with different types of insurance coverage and are not specifically related to the primary nature of the Umbrella Policy. Therefore, they are all incorrect choices for this particular question.