General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
An insured deliberately injures a finger to trigger the disability benefit in a newly issued policy. The insurer denies the claim because:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Covered losses must be fortuitous - accidental and unexpected. A deliberately self-inflicted injury is the opposite: the insured intended the event, so it is not a contingency and the policy does not respond. This also reflects the principle that insurance must not reward intentional conduct, which would create a moral hazard. The denial rests on the intentional nature of the act, not the injury's size or body part.
Why the other options are wrong
- B) The reason is that the loss was intentional, not that the injury was minor; even a small accidental injury could be covered.
- C) There is no blanket exclusion of finger injuries; coverage depends on the policy's disability definition and the accidental nature of the loss.
- D) Notarization is not required for a valid application or coverage.
Memory hook
Scheme -> no contingency -> no coverage. Insurance pays for accidents, not plans.