A personal lines licensee is allowed to write what type of coverage over underlying auto or residential property insurance policies?

The correct choice is umbrella or excess liability coverage. This type of insurance is designed to provide an additional layer of protection beyond the limits of underlying auto or residential property insurance policies. Essentially, it acts as a supplementary policy that kicks in when the liability limits of the underlying policies have been exhausted.

Umbrella policies cover a wide range of liabilities and can include additional protection against claims like libel, slander, or malicious prosecution, which may not be covered by standard auto or homeowner's policies. This makes umbrella or excess liability coverage particularly valuable for individuals seeking comprehensive liability protection that safeguards their assets in the event of a claim exceeding their primary policy limits.

In contrast, basic liability coverage is typically a fundamental component of auto and homeowner's policies rather than an additional layer of coverage. Collision and comprehensive coverages pertain specifically to the insurance of the vehicle itself rather than extending liability protection, and thus do not fit the criteria established in the question.