Alberto has an HO-2 contract with $100,000 of Liability Coverage. He is ordered by a judge to pay his neighbor $162,000 because of bodily injuries the neighbor suffered while he and Alberto were fishing in Alberto's old, undeclared 35 horse-power outboard motor boat. How will the contract respond?

$100,000 is paid to the neighbor

$62,000 is paid to the injured party

nothing is paid because liability arising out of this boat is excluded

$61,500 is paid because of the deductible