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8.4 Bodily Injury, Property Damage, and Personal/Advertising Injury

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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)

3.1 Dwelling Policy Forms DP-1, DP-2, DP-3 3.2 Dwelling Coverages A-E and Other Coverages 3.3 Dwelling Perils, Conditions, and Endorsements 3.4 Mobile Home and Specialized Dwelling Coverage

6 National Portion: Homeowners Policies - Forms & Section I

4.1 Homeowners Forms HO-2 through HO-8 and Eligibility 4.2 Section I Coverages A-D and Additional Coverages 4.3 Section I Perils Insured Against and Exclusions 4.4 Replacement Cost vs. ACV and Loss Settlement in Homeowners

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

9.1 Commercial Package Policy Structure and Common Policy Conditions 9.2 Building and Personal Property Coverage Form (BPP) 9.3 Causes of Loss Forms (Basic, Broad, Special) 9.4 Business Income and Extra Expense 9.5 Commercial Property Endorsements and the BOP

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

12.1 Business Auto Coverage Form and Covered Auto Symbols 12.2 Commercial Auto Liability and Physical Damage 12.3 Motor Carrier / Trucking and MCS-90 12.4 Garage Coverage Form and Garagekeepers 12.5 Commercial Auto Endorsements

15 National Portion: Workers Compensation

13.1 Workers Compensation Statutory Background and Benefits 13.2 Part One (Workers Comp) and Part Two (Employers Liability) 13.3 Premium Basis, Experience Modification, and Classification 13.4 Other States, USL&H, and Federal Acts 13.5 Workers Comp Exclusions and Endorsements

16 National Portion: Other Commercial Lines - BOP, Crime & Marine

14.1 Businessowners Policy (BOP) in Depth 14.2 Crime and Fidelity Coverage 14.3 Inland Marine and Nationwide Marine Definition 14.4 Ocean Marine Coverages (Hull, Cargo, Freight, P&I)

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

17.1 State Regulation, Licensing, and the McCarran-Ferguson Act 17.2 Rates, Forms, Solvency, and Guaranty Associations 17.3 Producer Authority, Fiduciary Duty, and Company Operations

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

8.4 Bodily Injury, Property Damage, and Personal/Advertising Injury

Key Takeaways Explain This Topic AI

CGL Coverage A pays for bodily injury (BI) and property damage (PD) caused by an occurrence; Coverage B pays for personal and advertising injury (P&AI).

Property damage includes physical injury to tangible property AND loss of use of tangible property that is not physically injured.

Personal injury offenses include false arrest, malicious prosecution, wrongful eviction, libel, and slander; advertising injury covers offenses in advertising.

The General Aggregate, Products-Completed Operations Aggregate, Each Occurrence, Personal & Advertising Injury, Medical Payments, and Damage to Premises Rented limits form the six-limit CGL structure.

Coverage C medical payments are no-fault, up to about $5,000 per person, and ignore liability.

Last updated: June 2026

Bodily Injury and Property Damage (Coverage A)

CGL Coverage A pays sums the insured is legally obligated to pay as damages because of bodily injury or property damage caused by an occurrence in the coverage territory.

Bodily injury (BI) — physical injury, sickness, or disease, including resulting death. Note ISO definitions traditionally exclude purely emotional harm unless tied to physical injury.

Property damage (PD) — has two prongs:

Physical injury to tangible property , including resulting loss of use; and

Loss of use of tangible property that is not physically injured.

Trap: PD covers loss of use even when nothing is physically broken — e.g., a contractor blocks access to a store, and the store loses business though the building is undamaged. Also, electronic data is not tangible property under the standard form.

An occurrence is defined as an accident, including continuous or repeated exposure to substantially the same harmful conditions.

Personal and Advertising Injury (Coverage B)

Coverage B is separate from Coverage A and does not require bodily injury or property damage. It responds to a list of named offenses , not to an 'occurrence.'

Personal injury offenses:

  • False arrest, detention, or imprisonment
  • Malicious prosecution
  • Wrongful eviction or wrongful entry / invasion of private occupancy
  • Oral or written publication that slanders or libels a person or organization
  • Publication that violates a person's right of privacy

Advertising injury offenses (committed in the insured's advertising):

  • Libel, slander, or disparagement in an ad
  • Violation of privacy in an ad
  • Misappropriation of advertising ideas or style of doing business
  • Infringement of copyright, trade dress, or slogan in the advertisement

Trap: Patent and trademark infringement are generally excluded from advertising injury; only copyright, trade dress, and slogan are covered.

The Six-Limit CGL Structure

The CGL Declarations show six distinct limits. Coverage A and B share the per-occurrence/offense structure but feed into aggregates.

  • Limit What It Caps
  • General Aggregate Most paid for all Coverage A (non-products), B, and C combined in the policy term
  • Products-Completed Operations Aggregate Separate cap for products/completed-operations BI and PD
  • Each Occurrence Most for any one occurrence (A + C combined)
  • Personal & Advertising Injury Most for any one person/organization (Coverage B)
  • Medical Payments Per-person no-fault limit (Coverage C, ~$5,000)
  • Damage to Premises Rented to You Fire/limited damage to rented premises (often $100,000)
  • Aggregate Depletion Example

A CGL has a $2,000,000 General Aggregate and a $1,000,000 Each Occurrence limit. Early in the year a covered occurrence pays $1,000,000 (the full per-occurrence limit). A second occurrence later pays $700,000 .

Remaining General Aggregate = $2,000,000 - $1,000,000 - $700,000 = $300,000 .

A third occurrence costing $500,000 is paid only up to the $300,000 left; the insured absorbs $200,000 .

Trap: The Each-Occurrence limit caps a single loss, but the aggregate caps the policy year. Defense costs are paid outside the limits and do not erode the aggregate on the standard CGL.

Coverage C — Medical Payments (No-Fault)

Coverage C pays reasonable medical expenses of an injured third party regardless of fault, up to about $5,000 per person , if the injury occurs on the insured's premises or from operations. It is goodwill, no-fault coverage designed to settle small claims quickly and discourage lawsuits.

Premises-Operations vs. Products-Completed Operations

Coverage A bodily injury and property damage splits into two exposure groups, and the exam tests which aggregate they erode.

  • Exposure Example Erodes Which Aggregate
  • Premises-Operations Customer slips in the store during business General Aggregate

Products-Completed Operations A product fails after sale, or finished work collapses later Products-Completed Ops Aggregate

Why the split matters: keeping completed-work and product claims in a separate aggregate means a string of product failures cannot exhaust the limits available for ongoing premises claims, and vice versa. A scenario describing harm from a product after it left the insured's control points to the products-completed operations aggregate, not the General Aggregate.

Trap: Damage to the insured's own product or own work is excluded (the 'your product' / 'your work' exclusions) — the CGL covers third-party harm the product causes, not the cost to replace the defective product itself.