Alberto Has an HO-2 Contract with $100,000 of Liability Coverage

Alberto has an HO-2 contract with $100,000 of Liability Coverage. He is ordered by a judge to pay his neighbor $162,000 because of bodily injuries the neighbor suffered while he and Alberto were fishing in Alberto's old,undeclared 35 horse-power outboard motor boat. How will the contract respond?

A) nothing is paid because liability arising out of this boat is excluded
B) $61,500 is paid because of the deductible
C) $62,000 is paid to the injured party
D) $100,000 is paid to the neighbor