Tina purchased a personal umbrella policy with a $1 million limit and a $1,000 self-insured retention.Her insurer required her to carry a $300,000 liability limit under her homeowners policy.Tina was held responsible for slandering a public official.The public official won a $100,000 judgment against Tina.The insurer that wrote Tina's homeowners policy denied coverage.How much will the insurer pay under Tina's personal umbrella policy?

Question

Quizplus · Accepted Answer

Since Tina's homeowners policy denied coverage and her personal umbrella policy has a $1,000 self-insured retention, the insurer will pay the difference between the judgment amount ($100,000) and the self-insured retention ($1,000), up to the $1 million limit of the personal umbrella policy. Therefore, the insurer will pay $99,000 ($100,000 - $1,000).

Tina Purchased a Personal Umbrella Policy with a $1 Million