Assume that Bill Blanton owns a HO-3 policy for his home. The limits set in his policy are provided below:

Type	Coverage A	Coverage B	Coverage C	Coverage D	Coverage E	Coverage F
Limit	$120,000	$12,000	$60,000	$24,000	$100,000	$5,000

A $250 deductible applies to Section 1, Coverages A, B, and/or C. The replacement cost of Bills home is $130,000, the contents are valued at $70,000, and the home is 30 percent depreciated. Compute the amount that Bill will collect in each of the following circumstances and assume that each event occurs separately. Note: a deductible will only apply if losses are less than the coverage limit.

E. While burning leaves at his house, Bill causes his neighbors house to burn (damage = $120,000).

F. While playing golf at his house, Bills ball hits another golfer in the head. Bill yelled a warning before the victim, Bob, was hit. Bob claims not to have heard the warning and sues Bill for $5,000 in medical expenses, $10,000 in lost wages (because he couldnt perform his work for three months), and $70,000 for pain and suffering. Assume that Bob wins the case, and it costs an additional $20,000 to provide Bill with a legal defense.

G. While Jack (bills son) is away at college, his stereo is stolen from his dorm room (damage = $1,000).

H. While carrying his television to the basement, Bill drops it. It is a total loss (damage = $2,500).

I. Bill is a certified public accountant working from his office at home. He is sued for negligence in preparing Als income tax. The suit is successful, and Al wins a $20,000 judgment

E) Personal liability limit Personal liability loss Total collected $100,000 $120,000 $100,000 F) $100,000 $10,000 $70,000 Personal libaility limit Bob's lost wages Bob's pain and suffering Medical payments to others limit Bob's medical bill Cost of Bill's legal defense Total collected $10,000 $20,000 G) Personal property limit Personal property loss Deductible Does deductible apply (yeso) Total collected $250 H) Personal property limit Personal property loss Deductible Does deductible apply (yesino) Is loss a covered peril (yestno) Total collected 1) Personal liability limit Personal liability loss Is loss excluded (yestno) Total collected E) Personal liability limit Personal liability loss Total collected $100,000 $120,000 $100,000 F) $100,000 $10,000 $70,000 Personal libaility limit Bob's lost wages Bob's pain and suffering Medical payments to others limit Bob's medical bill Cost of Bill's legal defense Total collected $10,000 $20,000 G) Personal property limit Personal property loss Deductible Does deductible apply (yeso) Total collected $250 H) Personal property limit Personal property loss Deductible Does deductible apply (yesino) Is loss a covered peril (yestno) Total collected 1) Personal liability limit Personal liability loss Is loss excluded (yestno) Total collected