George Has a Personal Auto Policy with a Per-Person Liability

question 2

Multiple Choice

George has a personal auto policy with a per-person liability limit of $300,000.He also has a personal umbrella policy with a limit of $2,000,000 and a self-insured retention of $1,000.How much will be paid by each policy if a person wins a judgment of $500,000 against George as a result of bodily injury arising from the auto accident?

• A)The auto policy will pay nothing,and the umbrella policy will pay $449,000.
• B)The auto policy will pay nothing,and the umbrella policy will pay $500,000.
• C)The auto policy will pay $300,000,and the umbrella policy will pay $199,000.
• D)The auto policy will pay $300,000,and the umbrella policy will pay $200,000.

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