James purchased a personal auto policy (PAP) that had limits of $100,000 per person for bodily injury liability, subject to a maximum of $300,000 per accident for bodily injury liability, and $50,000 for property damage liability. James also purchased a $1 million personal umbrella policy with a $5,000 self-insured retention. James ran a red light and hit another car. Two people in the other car were injured. The first person sustained bodily injuries of $150,000, and the second person sustained bodily injuries of $180,000. The other car, valued at $20,000, was destroyed. How will this claim be settled under the PAP and personal umbrella policy?

The PAP will pay $220,000 and the personal umbrella policy will pay $130,000.

The PAP will pay $350,000 and the personal umbrella policy will pay nothing.

The PAP will pay $220,000 and the personal umbrella policy will pay $125,000.

The personal umbrella policy will pay $345,000 and the PAP will pay nothing.