Which statement is true regarding credit toward the security deposit in SIP?

Which statement is true regarding credit toward the security deposit in SIP?

• A. Aggregate excess insurance is never credited toward the security deposit
• B. Aggregate excess insurance always reduces the security deposit
• C. Credit is allowed for any approved policy
• D. Aggregate work capolicy never reduces the security deposit

Answer: (A)

In SIP, credits to the security deposit come only from specific, approved policy credits, and aggregate excess insurance is not eligible for such a credit. That’s why this statement is true: having aggregate excess liability coverage does not reduce the amount the plan must deposit with the state. The other options imply credits or reductions that SIP does not authorize for this type of policy (or are too broad), so they don’t fit the established credit rules.

In SIP, credits to the security deposit come only from specific, approved policy credits, and aggregate excess insurance is not eligible for such a credit. That’s why this statement is true: having aggregate excess liability coverage does not reduce the amount the plan must deposit with the state. The other options imply credits or reductions that SIP does not authorize for this type of policy (or are too broad), so they don’t fit the established credit rules.