Jane purchased a $50,000 liability insurance policy from Insurer A. Fe

Jane purchased a $50,000 liability insurance policy from Insurer A. Fearing that she did not have enough liability insurance, she purchased an additional $100,000 of liability coverage from Insurer B.

As a result of a negligent act, Jane was ordered to pay $75,000 in damages. Assuming the coverage from Insurer A is primary and the coverage from Insurer B is excess, how will this claim be settled?
A) Insurer A will pay $50,000 and Insurer B will pay $25,000.
B) Insurer A will pay $37,500 and Insurer B will pay $37,500.
C) Insurer A will pay $25,000 and Insurer B will pay $50,000.
D) Insurer A will pay nothing and Insurer B will pay $75,000.

ANSWER

Answer: A