easy · Certified Financial Planner Risk Management

Duarte is considering a $1,000,000 personal umbrella policy. The umbrella insurer requires that he maintain a minimum of $300,000 in underlying auto liability coverage. Duarte currently only carries $100,000.

If Duarte is found liable for a $500,000 auto accident claim, what is his personal out-of-pocket exposure?

  1. $0
  2. $400,000
  3. $200,000
  4. $300,000

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