North Carolina Adjuster Practice Exam

What is the result of an injured party due to intentional acts as defined in insurance policies?

1. They are typically covered by standard policies

2. They are considered exclusions

3. They are covered only under liability policies

4. They require additional premium payment

The correct answer is: They are considered exclusions

The result of an injured party due to intentional acts is considered an exclusion in insurance policies. Most standard insurance policies explicitly state that they will not cover damages or injuries that arise from intentional acts committed by the insured. The rationale behind this exclusion is that insurance is designed to provide protection against unforeseen accidents and losses, rather than to cover willful misconduct or deliberate actions that result in harm to others. This exclusion is vital since it upholds the principle that individuals should be held accountable for their intentional actions. Insurance is meant to mitigate risk, and covering intentional harm would undermine this purpose, as it could lead to moral hazard where insured parties might engage in reckless or harmful behavior with an expectation of coverage. While some specific policies, such as certain liability insurance or specialized plans, may cover specific scenarios involving intentional acts under limited circumstances, the general principle across standard policies remains that injuries stemming from intentional actions are not covered.