-24-
Category Policy amounts Annual premium
Business auto $500,000 per $130,000-140,000
occurrence
Comprehensive 1,000,000 per 45,000-75,000
general liability occurrence
1
Products liability 1,000,000 per
occurrence and
aggregate
1 The premium for comprehensive general liability insurance
includes the premium for products liability insurance.
Petitioner had insurance on its farm buildings and farm
personal property.
Petitioner also had umbrella policies8 in the years in
issue. From 1983 to 1985, petitioner carried $10,000,000 of
umbrella coverage. In July 1985, U.S. Fire Insurance Co. (U.S.
Fire) decided not to offer umbrella policies with coverage
exceeding $5,000,000. U.S. Fire's decision remained in effect
for 12 to 18 months. In July 1986, U.S. Fire notified petitioner
that it would not renew petitioner's $5,000,000 umbrella policy
at the end of the policy period on October 1, 1986. As a result,
8 An umbrella insurance policy is a supplemental liability
policy that protects against losses above the amount covered by
other liability insurance policies.
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