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IIA Exam IIA-CFSA Topic 6 Question 36 Discussion

Actual exam question for IIA's IIA-CFSA exam
Question #: 36
Topic #: 6
[All IIA-CFSA Questions]

A manufacturer wants to protect the company from financial loss resulting from third-party lawsuits. The manufacturer has learned of several recent jury awards over $7 million for product defects. The manufacturer currently has only $5 million in this type of coverage. The manufacturer has also learned that several automobile claims have been recently awarded against other company's cars in accidents over $1 million. The manufacturer has damaged his competition and the manufacturer wants to protect his company further than the current policy allows. What insurance coverage product will the manufacturer likely buy?

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Suggested Answer: C

by Hubert at Jul 28, 2023, 12:30 AM

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Reynalda
3 months ago
Hey, I heard the manufacturer is looking to buy a new policy. Maybe they should get one that covers 'damaged competition' claims. Just a thought!
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Pamela
3 months ago
Personal injury protection? What is this, amateur hour? The manufacturer needs to go big or go home. Umbrella policy is the way to go.
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Rolf
1 months ago
C: I agree, an umbrella policy is the best option to protect against those high-dollar claims.
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Tamar
1 months ago
B: Yeah, an umbrella policy would definitely provide that extra layer of protection.
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Denny
1 months ago
A: An umbrella policy to place a protective umbrella over existing coverage.
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Hyun
3 months ago
A floater policy? Really? That sounds like something you'd use to, I don't know, float on a lake or something. This is serious business, not a day at the beach!
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Salome
3 months ago
Surplus lines policy, all the way! That's the only option that really addresses the need to cover claims beyond the current policy limits.
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Keneth
1 months ago
User 3: I think the manufacturer should definitely consider getting a surplus lines policy to cover those high-value claims.
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Tasia
2 months ago
User 2: I agree, it's important to have that extra protection against claims that exceed the current policy limits.
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Dana
2 months ago
User 1: Surplus lines policy is definitely the way to go.
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Curt
3 months ago
The manufacturer should definitely go for the umbrella policy. It's the perfect solution to beef up their existing coverage and protect against those massive jury awards.
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Meghann
2 months ago
User 2: Yeah, it's the best way to protect against those huge jury awards.
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Eun
2 months ago
User 1: I think the manufacturer should go for the umbrella policy.
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Lettie
3 months ago
But what about a surplus lines policy? Wouldn't that also protect against claims in excess of the policy limits?
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Selma
3 months ago
I agree, an umbrella policy would provide additional coverage.
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Iola
4 months ago
I think the manufacturer should buy an umbrella policy.
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