West Virginia Property and Casualty Licensing Practice Exam

Under a Commercial General Liability (CGL) policy, personal and advertising injury liability coverage does not cover damages from which of the following?

1. Slanderous statements made by an advertising firm

2. Infringement of copyright

3. False arrest

4. Malicious prosecution

The correct answer is: Slanderous statements made by an advertising firm

Personal and advertising injury liability coverage under a Commercial General Liability (CGL) policy is designed to protect businesses against certain types of non-physical injury claims that can arise from their advertising and other personal conduct. While it does cover a variety of offenses, it is important to note the specific exclusions that apply within the context of personal injury claims. Slander, which refers to defamatory statements made verbally, is covered under this type of policy, but it must also align with specific definitions and exclusions in the policy wording. In this case, while slanderous statements can be considered personal injury, there are particular circumstances under which defenses or exclusions may apply, especially if those statements were made with malice or within specific contexts that the policy does not cover. On the other hand, the other options provided—such as infringement of copyright, false arrest, and malicious prosecution—fall under the common definitions included in personal and advertising injury coverage of a CGL policy. These represent legitimate risks that the policy aims to cover, as they address broader themes of legal accountability for actions taken in the course of conducting business. Therefore, while personal and advertising injury coverage is robust, slanderous statements made by an advertising firm can lead to complexities in coverage, suggesting that it may