Tina purchased a personal umbrella policy with a $1 million limit and

Tina purchased a personal umbrella policy with a $1 million limit and a $1,000 self-insured retention.

Her insurer required her to carry a $300,000 liability limit under her homeowners policy. Tina was held responsible for slandering a public official. The public official won a $100,000 judgment against Tina. The insurer that wrote Tina’s homeowners policy denied coverage. How much will the insurer pay under Tina’s personal umbrella policy?
A) nothing
B) $49,000
C) $99,000
D) $100,000

ANSWER

Answer: C