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

• A. Approve the claim
• B. Increase the premium
• C. Cancel policy
• D. Refuse to pay the claim

Answer: (D)

The key idea is that excess-layer coverage relies on timely notice of claims as a condition for payment. When a claim isn’t reported to the excess carrier promptly, the policy’s notice provision is breached, and the excess insurer typically has the right to deny payment because they were not given the chance to participate in defense, investigation, and reservation of their exposure. In this context, refusing to pay the claim is the consequence that follows from failing to meet that notice requirement. Other actions like approving the claim, automatically increasing the premium, or canceling the policy aren’t standard responses to late notice under the excess layer unless there are separate, distinct policy issues involved.