Arkansas Insurance Adjuster Practice Exam

Which excess liability coverage could help pay for losses associated with a product recall?

1. Umbrella Policy

2. Follow Form Policy

3. Product Recall Policy

4. Stand Alone Policy

The correct answer is: Product Recall Policy

A, B, and D are incorrect because they do not specifically address coverage for product recalls. Umbrella policies provide additional liability coverage beyond the limits of a primary policy, but do not necessarily cover product recalls. Follow Form policies simply mirror the coverage of an underlying policy and do not provide additional or specific coverage for product recalls. Stand Alone policies may provide coverage for product recalls, but are less targeted than a specific Product Recall policy. Option C, Product Recall Policy, is the best choice because it is designed specifically to cover losses associated with product recalls.