The Hawks have a Homeowners policy with no special endorsements and a Personal Auto Policy covering a family vehicle. The policies have the following liability limits and deductibles: Homeowners: $500,000 excess a $25,000 deductible (Coverage E) and $10,000 excess a $1,000 deductible (Coverage F) Personal Auto Policy: $100,000/$300,000/$50,000 ($5,000 deductible) In addition, they have a first-level personal umbrella policy from ABC Company with a $1,000,000 limit and a deductible of $10,000. They have a second-level personal umbrella policy with XYZ Company with an additional $1,000,000 limit and a deductible of $0. Indicate the amount, if any, that would be paid by the Hawks’ personal umbrella policy(ies) for each of the following losses. Show your work and assume that each situation is a separate event, impacting comparable limits in different policy periods (I am not looking for cumulative math across all problems).

a. Mrs. Hawk was driving a friend’s car and struck a small commuter bus. The driver of the bus was critically injured. Mrs. Hawk’s friend has liability coverage in the amount of $1,000,000 for BI under her Personal Auto policy (with a $10k deductible). A BI judgment associated with the bus driver totaled $3 million. Ignore the PD for the purposes of the problem.

b. The Hawks’ guest slips and falls on a broken porch while exiting the home. The guest submits a medical expense claim to the Hawks for $25,000.

c. Mrs. Hawk is sued for malicious prosecution after filing a meritless lawsuit against a contractor to avoid paying for professional services. A jury awards damages in the amount of $2,000,000.

d. Assume The Hawks’ PAP changed to a single (versus split) limit of $300,000 (excess of a $5k deductible). The Hawks’ friend borrowed the Hawks’ vehicle with permission and negligently caused an accident with an Uber driver. The friend is not currently carrying independent PAP insurance (but has a license to drive). While the driver of the Uber did not have a passenger at the time, she sustained $300,000 in bodily injuries and $25,000 in property damages.