Reference no: EM133399420

Question: Mary and John are a retired couple and their home and car are insured with Goshen Mutual. The liability limit on the homeowners policy is $300,000 per occurance and the liability limit on the auto policy is $500,000 per occurance. Both Mary and John are avide golfers. John recently ontained his pilot's license and occasionally rents a small private plan from the local airport. Mary volunteers at a not-for-profit daycare center, and John is a volunteer driver for a cancer support group. Their insurance agent reccomended they purchase personal umbrella liability coverage and has submitted an application to Goshen Mutual: 1 - Briefly outline the liability loss exposures the underwriter would consider. 2 - Goshen Mutual's personal umbrella liability policy's requirements for the underlying polices are $100,000 for the homeowners policy and $300,000 for the auto liability policy. Briefly explain whether John and Mary meet the underlying policy requirements. 3 - The underwriter has evaluated the couple's loss exposures, the coverage provided by the underlying policies, and the coverage and exclusions of the personal umbrella liability policy. Briefly outline which of the couple's loss exposures would not be covered.