Driving on a major urban road in heavy traffic one rainy night, a woman rear-ended the car ahead of her. With no suitable place to pull over nearby, the two motorists got out of their vehicles to exchange insurance information. They were standing between their cars when a third driver hit the woman's car, trapping and seriously injuring the first two drivers. Vehicle damage came to about $2,500. But medical injuries, loss of wages, and pain and suffering resulted in a $5 million settlement, says Ross Buchmueller, president and CEO of insurer Privilege Underwriters Reciprocal Exchange.

Fortunately for the victims, the third driver carried the company's personal excess liability policy, which can cover up to $20 million in damages. "Five million dollars," Buchmueller notes, "and this was not even a case of recklessness - driving drunk, texting or speeding."

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