Question 80

Under a Personal Umbrella policy, an insured must typically maintain automobile and personal liability coverages.

To effectively utilize a Personal Umbrella policy, an insured is generally required to have both automobile and personal liability coverages in place. This ensures that the umbrella policy can provide additional liability protection above the limits of these underlying coverages.

A) Automobile only.

This option is incorrect because a Personal Umbrella policy requires more than just automobile coverage. Without personal liability coverage, an insured would not meet the necessary requirements for the umbrella policy to provide additional protection, which is why this option fails to encompass all necessary underlying coverages.

B) Personal liability only.

This choice is also incorrect as it overlooks the necessity of maintaining automobile coverage. A Personal Umbrella policy needs both automobile and personal liability coverages to function effectively, and having only one of these would not satisfy the policy's requirements.

C) Automobile and personal liability.

This option is correct because a Personal Umbrella policy generally requires the insured to maintain both automobile and personal liability coverages. These underlying policies provide essential first-line protection, which the umbrella policy then extends upon, thus ensuring comprehensive liability coverage.

D) Automobile, personal liability, and professional liability.

While this option includes automobile and personal liability, it incorrectly adds professional liability as a requirement. Personal Umbrella policies do not typically require professional liability coverage, making this option incorrect as it exceeds the necessary underlying coverages.

Conclusion

The correct answer, C, accurately reflects the requirements for maintaining a Personal Umbrella policy, which mandates both automobile and personal liability coverages. Options A and B fail by not including both necessary coverages, while D incorrectly adds a requirement that is not standard for such policies. Therefore, C stands out as the definitive correct choice.