Nicole and Elliott own a home and have purchased an HO 3 policy with no special endorsements. They have elected Section II limits of $300,000 per occurrence for Coverage E (Personal Liability) and $5,000 per person for Coverage F (Medical Payments). For each of the following situations, explain whether or not the policy will respond to the loss and if the policy will pay, indicate how much will be paid. If a loss is not covered, your answer should include reference to the specific exclusion or condition in the policy that would apply. a. Nicole hosts a baby shower for one of her friends at her house and during the festivities, one of her guests becomes ill due to eating some spoiled tuna salad that Nicole had prepared. The guest is rushed to the hospital and incurs $3,000 in medical bills. Would this cost be covered by the couple's HO policy? Explain why or why not. Your Answer Here: b. Elliott is quite the golfer and one day while playing a round of golf with some friends, he whacks his tee-shot into someone's back yard and hits the homeowner on the head with his golf ball. The injured person files a claim against Elliott for $1,200,000. Your Answer Here: c. Nicole and Elliott go to a boat show at the Civic Center and purchase a 28-foot boat with a 225-horsepower engine. The following weekend, they tow to the boat to the lake to take it out for the day. While driving the boat, Elliott accidently runs into another boat and several people are injured due to his negligence. They file claims against him for $400,000. Your Answer Here: d. Nicole is a licensed physical therapist and opens a business in her home. During the year she expects to earn $25,000 for providing her services to customers. One of her clients slips and falls while entering the house and files a claim for $30,000. Your Answer Here: e. Elliott and Nicole decide to sell their house to Emily on March 1 and they do not notify their insurance company of the sale. They move out and Emily moves in and six months later Emily's dog bites a neighbor and the injured person sues Emily for $100,000. Emily submits the legal papers to Elliott and Nicole's insurance company for payment. Will the insurer pay the claim? Why or why not