Jane purchased a $50,000 liability insurance policy from Insurer A. Fearing that she did not have enough liability insurance, she purchased an additional $100,000 of liability coverage from Insurer B. As a result of a negligent act, Jane was ordered to pay $75,000 in damages. Assuming the coverage from Insurer A is primary and the coverage from Insurer B is excess, how will this claim be settled?

Jane purchased a $50,000 liability insurance policy from Insurer A. Fearing that she did not have enough liability insurance, she purchased an additional $100,000 of liability coverage from Insurer B. As a result of a negligent act, Jane was ordered to pay $75,000 in damages. Assuming the coverage from Insurer A is primary and the coverage from Insurer B is excess, how will this claim be settled?



A) Insurer A will pay $50,000 and Insurer B will pay $25,000.

B) Insurer A will pay $37,500 and Insurer B will pay $37,500.

C) Insurer A will pay $25,000 and Insurer B will pay $50,000.

D) Insurer A will pay nothing and Insurer B will pay $75,000



Answer: A) Insurer A will pay $50,000 and Insurer B will pay $25,000.

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