Iowa Casualty insures Jeffersons Jewelry Store, Inc. under a CGL Policy. The policy period is August 1, 2016 to August 1, 2017. In June, 2016, a Jeffersons security guard forces a customer who the guard thinks is a shop lifter into the back of the store where the customer is searched. The customer is found to be innocent. 10 months later, the customer sues Jeffersons alleging the false imprisonment and that the date it happened was on June 15, 2016. (answer in terms of the CGL policy)

A. Is Iowa Casualty obligated to defend Jeffersons? Why or why not?

B. Assume Jeffersons believes the customer did, in fact, steal a piece of jewelry. Jefferson reports the matter to the district attorney in June, 2016. The district attorney prosecutes the customer in October, 2016. The customer is acquitted of the theft charge in November, 2017 and then files a Malicious Prosecution lawsuit against Jeffersons for having him prosecuted. Is Iowa Casualty obligated to defend this lawsuit? Why or why not?

C. Instead of a Malicious Prosecution case, assume the customer files a defamation lawsuit against Jeffersons for telling the district attorney in September, 2016 that the customer was a thief. The lawsuit alleges Jeffersons either knew or should have known the customer was not a thief. Does Iowa Casualty have to defend? Why or why not?

D. If Iowa Casualty agrees to defend Jeffersons in the defamation lawsuit referenced above, should it issue a Reservation of Rights? Why or why not?