Dan has a personal umbrella policy with a $1 million limit. The self-insured retention is $250. Dan has a homeowner’s policy with no special endorsements and an auto insurance policy. The policies have the following liability limits: Homeowners policy: $300,000 Personal auto policy: $250,000/$500,000/$50,000. The liability limits meet the umbrella insurer's requirements with respect to the minimum amounts of liability insurance on the underlying contracts. Indicate whether each of the following losses would be covered under Dan's personal umbrella policy. If the loss is not covered, or not covered fully, explain why.
a. Dan coaches a Little League baseball team. A team member sitting behind third base was struck in the face by a line drive and lost the sight in one eye. Dan issued by the parents, who allege that his coaching and supervision are inadequate. The team member is awarded damages of $1 million.
b. Dan is a member of the board of directors for the local YMCA. The YMCA is a nonprofit organization. Dan issued by a YMCA member who was seriously injured when a trampoline collapsed. The injured member is awarded damages of $500,000.
c. Dan accuses a male teenager, age 14, of stealing his racing bike valued at $2000. The police arrest the youth and book him. The police later arrest the actual thief and recover the bicycle. Dan issued by the youth's parents for false arrest. The teenager is awarded damages of $100,000.
d. Dan is driving to his son's soccer game. He fails to stop at a red light, and his car strikes another motorist. The injured motorist is awarded damages of $200,000.