Property and Casualty Insurance Practice Exam

What does personal injury in insurance typically refer to?

1. Slander, libel, or invasion of privacy

2. Property damage to real estate

3. Indemnity for financial losses

4. Injuries sustained in a vehicular accident

The correct answer is: Slander, libel, or invasion of privacy

Personal injury in the context of insurance primarily refers to non-physical injuries that can affect an individual's reputation, emotional well-being, or privacy rights. This encompasses acts such as slander (which involves making false spoken statements about someone), libel (false written statements), or invasion of privacy (intruding into someone's personal life without consent). These types of harm are critical to understanding because they fall under liability coverage in many liability insurance policies, particularly in commercial general liability and personal liability contexts. The focus on slander, libel, and invasion of privacy highlights the legal implications that can arise from these acts, which can result in lawsuits and potential financial damages that the insurance policy would cover. This aspect of personal injury is vital in distinguishing it from bodily injury, which pertains more to physical harm to a person. By understanding this terminology, individuals in the property and casualty insurance field can better assess risks and coverage options.