solution

Jerry and Lois Gower own and operate the Gower Painting Co. 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 $1000 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.

a. Jerry left a ladder standing against a house that he was painting. When Jerry went to lunch, a child, age 7, climbed the ladder and was seriously injured when the ladder collapsed. Jerry is sued by the child’s parents for $200,000.

b. Lois accidentally fell off the roof of a house that she was painting and injured her leg. She incurred medical expenses of $3000.

c. The couple’s daughter, Jennifer, age 22, attends college at a large Midwestern university. While playing softball, Jennifer made a hard slide into second base and accidentally injured the opposing player. The injured player claims Jennifer intended to injure her and sues Jennifer for $50,000.

d. Lois has a pet basset hound, Huey. Huey is a friendly, docile dog and loves people. One morning, Lois carelessly left the backyard gate open, and Huey escaped from the fenced yard. A neighbor tried to catch the dog, and Huey bit him on the hand and leg. The neighbor incurred medical bills of $800. Lois is later sued by the neighbor for $50,000 when the dog bite became infected and did not heal.

e. Jerry is playing golf with a friend who is riding in a golf cart that he is operating. The cart overturned when Jerry carelessly drove the cart off the fairway and hit a tree. Jerry’s friend is seriously injured and sues Jerry for $150,000.