Property and Casualty Insurance Practice Exam

The Personal Injury Endorsement modifies which of the following?

1. The definition of bodily injury to include personal injury

2. The cap on property damage claims

3. The rules surrounding personal belongings

4. The limits for vehicle-related accidents

The correct answer is: The definition of bodily injury to include personal injury

The Personal Injury Endorsement specifically modifies the definition of bodily injury to include personal injury. In the context of insurance policies, bodily injury typically refers to physical harm to a person or persons. However, personal injury encompasses non-physical harm, such as defamation, invasion of privacy, or false arrest. By broadening the definition to include personal injury, the endorsement extends coverage that would address situations where an individual may experience emotional or reputational damage without any physical injury occurring. This inclusive approach is significant in liability insurance as it acknowledges the diverse nature of claims that may arise in today’s litigious environment, thereby offering more comprehensive protection to policyholders against potential lawsuits related to personal injury incidents. Other options mentioned, such as limits related to property damage or vehicle-related accidents, do not directly relate to the modification brought about by the Personal Injury Endorsement and instead focus on other aspects of insurance coverage.