. Ann purchased an unendorsed ISO Homeowners 3 policy. The policy provides the property coverages in Section I that we discussed in class. The Coverage E limit is $100,000 per-occurrence. Ann also purchased a personal umbrella policy with a $1,000,000 (one million dollar) limit and a $5,000 self-insured retention. How will the following claims be settled?

a. A spark from the fireplace started a fire in Anns living room. The fire destroyed Anns living room set a couch and two matching chairs. The living room set cost $3,000 when it was purchased, and it was worth $2,250 at the time of loss because of depreciation. A comparable replacement living room set will cost $3,200. (1.5 points, assume the HO policy does not have a deductible, show your work as partial credit may be awarded)

2. Ann has a golden retriever dog named Goldy. Anns son and a neighbors daughter were playing in Anns back yard. Goldy bit the neighbors daughter on her face. The neighbors sued Ann for their daughters injuries. The court ordered Ann to pay $175,000 in damages. How will this claim be settled? Clearly indicate what is covered by the HO-3 policy (if anything), what is covered by Anns personal umbrella policy (if anything), and what Ann must pay herself (if anything). (1.5 points)