Which of the following statements concerning personal umbrella liability insurance is (are) correct?

1. The personal umbrella policy is designed primarily to provide liability coverage for catastrophic legal claims or judgments.

2. The personal umbrella policy requires the policyowner to carry certain underlying liability coverages of specified minimum amounts on both the homeowners policy and the PAP. A claim made under an umbrella policy will pay only after the limits of the relevant underlying policy are exhausted.

a. 1 only.

b. 2only.

c. Both 1 and 2.

d. Neither 1 nor 2.