Reference no: EM132398456

Lucinda and Pedro Valdez own and operate the Valdez Landscaping Company. The couple is insured under a Homeowners 3 policy with no special endorsements. The policy has a $100,000 per occurrence limit for personal liability and a $1,000 limit for medical payments to others. For each of the following situations, indicate to what extent, if any, the loss is covered under Section II of their homeowners policy.

1. Pedro left a ladder standing against a tree that he was trimming. When Pedro went to his truck for a break, a child, age 5, climbed the ladder and was seriously injured when the ladder collapsed. Pedro is sued by the child's parents for $200,000.
2. Lucinda accidentally fell off the riding lawn mower that she was using to mow her lawn and injured her leg. She incurred medical expenses of $2,500.
3. The couple's son, Cesar, age 20, attends college at a large midwestern university. While playing golf, Cesar hit a golf ball into the roadway and hit a moving car adjacent to the golf course and accidentally injured the driver. The injured driver claims Cesar was careless when hitting his drive and sues Cesar for $25,000.