The improved zigzag theory recently developed by the authors for smart, piezoelectric, and laminated cylindrical shells is assessed for the response of finite-length cross-ply shells and shell panels under mechanical, potential, and thermal loading, in direct comparison with the exact three-dimensional (3D) piezothermoelasticity solution. This theory has the unique features of including the transverse normal strain due to thermoelectric loading without introducing additional deflection variables, capturing the nonlinear potential field and actual temperature profile across laminate thickness, accounting for the layerwise (zigzag) variation of inplane displacements, and satisfying the conditions on transverse shear stresses at the layer interfaces and at the inner and outer surfaces. For the assessment, new results are obtained for the 3D exact solution for smart cylindrical shells having a test laminate with widely different material properties across layers, a piezo-composite laminate and a piezo-sandwich laminate. To ascertain the contribution of the layerwise terms in the inplane displacements, the theory is compared with its smeared counterpart with the same number of primary variables. The effect of inclusion of transverse normal extensibility in these theories is established by comparing with their conventional counterparts that assume constant deflection across the thickness. The effect of span angle (for shell panels), length, and thickness parameters on the error of the 2D theories is illustrated.