Los Angeles Claims Adjuster Property and Causality Practice Exam

What does the Personal and Advertising Injury Limit in CGL cover?

1. Coverage for all claims during the policy period

2. Damages due to personal or advertising injury for one claim

3. Medical payments for bodily injury

4. Fire damage liability

The correct answer is: Damages due to personal or advertising injury for one claim

The Personal and Advertising Injury Limit in a Commercial General Liability (CGL) policy specifically pertains to damages awarded for claims related to personal or advertising injuries that occur within the policy period. This coverage is designed to protect businesses from various forms of liability that can arise from their advertising activities or personal injuries claimed by third parties, such as defamation, invasion of privacy, or false advertising. Option B accurately reflects that this limit pertains to damages due to personal or advertising injury for one claim. The coverage is typically set at a specific amount by the policy, and it reflects the insurer's maximum liability for such claims. Specifically, this limit is distinct from other coverage types and is focused solely on the defined categories of personal and advertising injuries. The other options do not align with the specifics of the Personal and Advertising Injury Limit. For instance, coverage for all claims during the policy period encompasses a broader range of liabilities and does not specifically relate to personal or advertising injuries. Medical payments for bodily injury deal with a different type of coverage aimed at providing immediate payment for medical expenses incurred due to bodily injury, which is not covered by the Personal and Advertising Injury section. Lastly, fire damage liability typically refers to policies that cover damage caused by fire incidents rather than personal or advertising injuries