Lori’s dog bites a small child. The parents sue Lori and are awarded damages of

Question

Lori’s dog bites a small child. The parents sue Lori and are awarded damages of $30,000.

Lori failed to stop at a red light, and her car hit a school bus. Two children are severely injured. A court awards each child damages in the amount of $400,000.

Lori is a local volunteer for a local charity. While being interviewed on television with other guests, Lori calls one of the guests a “big lady”. The guest sues Lori for defamation of character and is awarded damages of $35,000.

Lori is a member of the board of directors for a local bank. She receives an annual fee of $50,000 for his service as a board member. She is also a member of the boards audit committee. The shareholders sue Lori and other board members for not discovering fraudulent accounting transactions that caused millions of dollars of losses to the shareholders. A court awards the shareholders damages of $7 million.

Explanation / Answer

a.         Nothing as personal liability is covered under the homeowner’s policy

b.         $350,000 – 250,000 = $100,000 X 2 = $200,000 will be paid by the umbrella policy

c.         $25,000 - $250.00 = $24,750 will be paid thru Lori’s umbrella policy

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