While playing golf, Bill’s ball hits another golfer in the head. Bill yelled a warning before the victim, Bob, was hit. Bob claims not to have heard the warning, and sues Bill for $60,000 in medical expenses, $6,000 in lost wages (because he couldn’t perform his work for three months), and $100,000 for pain and suffering. Assume Bob wins the case, and it costs an additional $20,000 to provide Bill with a legal defense.

Assume Bill Clanton owns the ISO HO-2 policy described in this chapter and reproduced in Appendix A. The limits are as follows:

A = $ 120,000

B = $ 12,000

C = $ 60,000

D = $ 24,000

E = $ 100,000

F = $ 5,000

A $250 deductible applies to Section I, Coverages A through D. The replacement cost of Bill’s home is $130,000, the contents are valued at $70,000, and the home is 30 percent depreciated.