Andrea purchased an auto insurance policy with bodily injury liability limits of 250/500 ($250,000/$500,000).She also purchased a personal umbrella policy with a $1 million limit and a $500 self-insured retention.Andrea was talking on her cell phone while driving,and her car struck and killed a pedestrian in a crosswalk.The court ordered her to pay $750,000 to the spouse of the person she killed.How will this claim be settled?

Question

Quizplus · Accepted Answer

The auto policy with bodily injury liability limits of 250/500 will cover the first $250,000 of the claim. The remaining $500,000 will be covered by the personal umbrella policy, as the claim exceeds the auto policy's limits and falls within the umbrella policy's coverage, after considering the self-insured retention of $500, which is not mentioned in this option but is part of how umbrella policies typically work.

Andrea Purchased an Auto Insurance Policy with Bodily Injury Liability