10.2 CGL Coverage B: Personal and Advertising Injury, Coverage C: Medical Payments

Arkansas Property & Casualty Insurance State

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1 Standalone Coverage Map

Standalone Coverage Map

2 Introduction: Arkansas Property & Casualty Insurance Exam Overview

Arkansas Property & Casualty Exam Overview

3 National Portion: Insurance Fundamentals

1.1 Risk, Hazards, Perils, and the Law of Large Numbers 1.2 Insurable Interest, Indemnity, and Other Insurance Principles 1.3 Insurance Contract Law and Elements 1.4 Policy Structure: Declarations, Insuring Agreement, Conditions, Exclusions 1.5 Parties, Agents vs. Brokers, and Authority

4 National Portion: Property Insurance Concepts

2.1 Causes of Loss / Named-Peril vs. Open-Peril 2.2 Valuation: ACV, Replacement Cost, and Functional Value 2.3 Coinsurance and the Coinsurance Formula 2.4 Deductibles, Limits, and Loss Settlement 2.5 Common Property Policy Conditions and Clauses

5 National Portion: Dwelling Policies (DP)

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7 National Portion: Homeowners Policies - Section II & Endorsements

5.1 Section II Coverages E (Liability) and F (Medical Payments) 5.2 Homeowners Conditions and Duties After Loss 5.3 Common Homeowners Endorsements (scheduled property, water backup, ordinance or law)

8 National Portion: Personal Auto Policy - Liability & Injury

6.1 Personal Auto Policy Structure and Eligibility 6.2 Part A Liability and Supplementary Payments 6.3 Part B Medical Payments 6.4 Part C Uninsured/Underinsured Motorists

9 National Portion: Personal Auto Policy - Physical Damage & Duties

7.1 Part D: Coverage for Damage to Your Auto 7.2 Exclusions and Part E: Duties After an Accident 7.3 Part F: General Provisions, Endorsements, and No-Fault Concepts

10 National Portion: Liability Insurance Concepts

8.1 Negligence, Torts, and Legal Liability 8.2 Defenses, Damages, and Vicarious Liability 8.3 Occurrence vs. Claims-Made Triggers 8.4 Bodily Injury, Property Damage, and Personal/Advertising Injury

11 National Portion: Commercial Property Insurance

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12 National Portion: Commercial General Liability - Coverages

10.1 CGL Coverage A: Bodily Injury and Property Damage Liability 10.2 CGL Coverage B: Personal and Advertising Injury, Coverage C: Medical Payments 10.3 Who Is an Insured and Supplementary Payments

13 National Portion: Commercial General Liability - Limits, Triggers & Exclusions

11.1 CGL Limits of Insurance and Aggregates 11.2 Occurrence vs. Claims-Made CGL and Retroactive Dates 11.3 Key CGL Exclusions and Endorsements

14 National Portion: Commercial Auto Insurance

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15 National Portion: Workers Compensation

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17 National Portion: Other Commercial Lines - Specialty & Professional

15.1 Farm and Agricultural Coverage 15.2 Commercial Umbrella and Excess Liability 15.3 Professional Liability and Errors & Omissions 15.4 Directors & Officers and Employment Practices Liability

18 National Portion: Other Commercial Lines - Surety, Flood & Specialty

16.1 Surety and Fidelity Bonds 16.2 National Flood Insurance Program (NFIP) 16.3 Cyber, Aviation, and Other Specialty Lines

19 National Portion: Insurance Regulation & Market Conduct

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20 National Portion: Ethics & Unfair Trade Practices

18.1 Unfair Trade Practices and Unfair Claims Settlement 18.2 Producer Ethics, Errors & Omissions Exposure, and Fiduciary Conduct 18.3 Privacy, Fraud, and Consumer Protection

21 Chapter 1: Arkansas P&C Insurance Regulation & Licensing

1.1 Arkansas Insurance Department 1.2 Arkansas P&C Producer Licensing Requirements 1.3 Arkansas Producer Responsibilities

22 Chapter 2: Arkansas Property Insurance

2.1 Arkansas Homeowners Insurance 2.2 Arkansas Commercial Property Insurance

23 Chapter 3: Arkansas Casualty & Auto Insurance

3.1 Arkansas Auto Insurance Requirements 3.2 Arkansas Liability Insurance 3.3 Arkansas Workers' Compensation Insurance

24 Chapter 4: Arkansas Ethics & Professional Conduct

4.1 Ethical Practices and Consumer Protection

10.2 CGL Coverage B: Personal and Advertising Injury, Coverage C: Medical Payments

Key Takeaways Explain This Topic AI

Coverage B covers seven enumerated personal and advertising injury offenses (false arrest, malicious prosecution, wrongful eviction, libel/slander, invasion of privacy, use of another's advertising idea, copyright/trade dress/slogan infringement) and does not require an occurrence.

Patent and trademark infringement are NOT covered under Coverage B; only copyright, trade dress, and slogan in the insured's advertisement are.

Coverage C pays medical expenses regardless of fault for accidents on or next to the insured's premises or from operations, default $5,000 per person, reported within one year.

Coverage C excludes insureds, employees, workers comp claimants, tenants on their own space, and products-completed operations injuries.

Coverage A BI/PD and Coverage C medical payments share the single each-occurrence limit - they are not stacked.

Last updated: June 2026

Coverage B - Personal and Advertising Injury Liability

Coverage B broadens the CGL beyond bodily injury and property damage to cover liability for specific intentional but non-physical torts . Unlike Coverage A, Coverage B does not require an 'occurrence' (accident) - the listed offenses are often deliberate acts of the insured's business that happen to cause legal liability.

'Personal and advertising injury' is a defined term covering injury, including consequential bodily injury, arising out of one or more of these seven enumerated offenses . Because the trigger is the commission of a listed offense rather than an accident, a deliberate business act (such as running a comparative advertisement) can be covered even though it was fully intended. The offenses split into personal-injury offenses (1-5) and advertising-injury offenses (6-7):

False arrest, detention, or imprisonment
Malicious prosecution
Wrongful eviction, wrongful entry, or invasion of the right of private occupancy
Oral or written publication that slanders or libels a person or organization
Oral or written publication that violates a person's right of privacy
The use of another's advertising idea in your advertisement
Infringing upon another's copyright, trade dress, or slogan in your advertisement

Coverage B limit and key exclusions

The Personal and Advertising Injury Limit is the most the insurer pays for all such injury sustained by any one person or organization. Payments erode and are subject to the general aggregate .

Frequently tested Coverage B exclusions:

Knowing violation of the rights of another (the insured knew the act would violate rights and cause injury)
Material published with knowledge of falsity (knowingly false libel/slander)
Material first published before the policy period (prior publication)
Criminal acts committed by or at the direction of the insured
Contractual liability the insured assumed (with carve-backs)
Breach of contract , except misappropriation of advertising ideas under an implied contract

Wrong description of price, failure of goods to conform to advertised quality, and infringement of patent or trademark (patent/trademark infringement is NOT covered; only copyright, trade dress, and slogan in 'your advertisement' are)

Coverage C - Medical Payments

Coverage C pays reasonable medical expenses for bodily injury caused by an accident on premises the insured owns or rents, on ways next to those premises, or because of the insured's operations. The defining feature is that it is paid regardless of fault (no-fault goodwill coverage) - the injured person does not have to prove the insured was negligent.

Medical expenses must be incurred and reported within set timeframes:

The accident must take place in the coverage territory and during the policy period.

Expenses are paid if incurred and reported to the insurer within one year of the accident date.

The injured person must submit to exams by the insurer's physicians as often as reasonably required.

The default Medical Expense Limit is $5,000 any one person , subject to the each-occurrence limit and the general aggregate. Coverage C is voluntary first-aid goodwill: the insurer pays without an admission of liability, which can prevent a minor incident from escalating into a Coverage A negligence suit. Higher medical-payments sublimits can be purchased by endorsement when foot traffic or premises exposure is significant.

Coverage C exclusions and the A vs C relationship

Coverage C does NOT pay medical payments to:

Any insured (other than volunteer workers, in limited cases)
A person hired to do work for any insured
A person injured on the part of premises the person normally occupies (a tenant)
Anyone entitled to workers compensation benefits
Persons injured in products-completed operations or in war
Bodily injury otherwise excluded under Coverage A

Relationship to Coverage A: Coverage C is a small no-fault first-aid benefit meant to settle minor injuries quickly and discourage lawsuits. If the injured party later sues, the matter shifts to Coverage A (which requires legal liability). Importantly, Coverage C medical payments and Coverage A BI/PD share the each-occurrence limit - they are not stacked separately for one occurrence.

Worked example - shared each-occurrence limit

A customer slips in a covered store accident. The CGL has a $1,000,000 each occurrence limit and $5,000 Coverage C medical expense limit. The insurer pays $4,000 under Coverage C for the customer's emergency care without contesting fault. The customer later sues and a $700,000 BI judgment is awarded under Coverage A.

Coverage C paid: $4,000 (within the $5,000 sublimit).

The each-occurrence limit ($1,000,000) caps the sum of Coverage A BI/PD and Coverage C medical payments for one occurrence.

Total drawn from the each-occurrence limit: $700,000 (A) + $4,000 (C) = $704,000 , well within $1,000,000.

If the judgment had been $1,000,000, the $4,000 already paid under C would reduce what is available, because both share the single each-occurrence cap. This sharing is a classic exam point.

Coverage B vs. Coverage A - why both matter

Candidates routinely confuse the two liability coverages. Use this contrast table when a question describes a loss:

Feature Coverage A (BI/PD) Coverage B (Pers. & Adv. Injury)
Trigger Occurrence (accident) Commission of an enumerated offense
Type of harm Physical injury or property damage Reputational, privacy, advertising harm
Fault element Negligence-based liability Often intentional business conduct
Limit Each occurrence + general aggregate Per person/org + general aggregate
Defense In addition to limits In addition to limits

A defamation lawsuit against a business for a disparaging press release falls under Coverage B (libel/slander), not Coverage A, because there is no bodily injury or physical property damage. Conversely, a customer's broken leg from a slip-and-fall is Coverage A . Recognizing which coverage a fact pattern triggers - and that both share the general aggregate - is essential. Note that 'personal injury' in insurance vocabulary means the Coverage B offenses, NOT bodily injury, which trips up many test-takers from a liability-law background.