Baker Company, a manufacturer of electric controls, has an occurrence basis CGL policy with the following limits of liability:

General Aggregate $2,000,000

Products-completed operations aggregate $2,000,000

Each Occurrence $1,000,000

Baker also has an occurrence-basis umbrella policy with the following limits:

Aggregate $4,000,000

Each Occurrence $2,000,000

Self-insured retention $ 25,000

Baker Company has other primary liability policies and is in full compliance with the umbrella policys maintenance of underlying insurance condition. Moreover, all of Baker Companys liability policies have concurrent policy periods.

Several persons were injured in an explosion resulting from the malfunction of an electronic component manufactured by Baker Company. They sued Baker jointly and received $3,500,000.

A) How much will Baker Companys CGL policy pay for the verdict?

B)How much will Baker Companys umbrella policy pay for the verdict?

C) How much will Baker Company be obligated to pay for the verdict?