If you fail to notify the excess carrier of a claim, the excess carrier may:

• A. Three times the amount unlawfully collected.
• B. Seek treble damages.
• C. Revoke coverage.
• D. Cancel the policy.

Answer: (A)

Notifying the excess carrier about a claim is essential to keep coverage coordinated and to prevent improper or duplicate payments. When that notice is missing, the insured may have effectively caused the excess layer to pay amounts it shouldn’t have, or to miss recovery opportunities that could have been avoided with prompt reporting. California law imposes a strong penalty for this kind of improper collection: treble damages, meaning three times the amount unlawfully obtained. This penalty is designed to deter failures to disclose and to protect the integrity of the layered coverage system.

So the best answer reflects that the excess carrier may seek three times the unlawfully collected amount. Revoke or cancel the policy aren’t automatic remedies for simply failing to notify; they’re broader actions that require separate grounds, whereas the stated remedy focuses on the treble damages penalty.