Louisiana P&C Adjuster Practice Exam 2026 – All-in-One Test Prep

The correct answer is advertising injury, which refers to claims that arise from the use of another party's intellectual property, such as copyrighted material, in a way that infringes on their rights. In this context, James used a copyrighted cartoon image without permission in his advertisements, which is a direct violation of copyright laws. This situation can lead to lawsuits specifically categorized under advertising injury, as the claim is centered around the unauthorized use of intellectual property for commercial purposes.

Other types of claims, such as personal injury, contractual liability, and product liability, do not accurately describe the issue at hand. Personal injury typically involves physical harm or emotional distress caused to an individual, contractual liability pertains to violations of agreements between parties, and product liability involves claims related to defects or dangers associated with a product. Therefore, advertising injury is the most relevant classification for the legal implications stemming from the use of the copyrighted cartoon image in advertisements.