General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 3/5
A man purposely injures himself in order to collect disability benefits. Under the principle that insured losses must be fortuitous, the insurer should:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A loss caused intentionally by the insured is not fortuitous and is not covered. Insurance indemnifies against accidental, unexpected events; a deliberately self-inflicted injury is a self-created loss that falls outside the scope of the policy's insuring clause. Honoring such a claim would also invite moral hazard and undermine the integrity of the risk pool.
Why the other options are wrong
- B) The existence of a disability does not matter when the loss was intentionally produced; fortuity is absent.
- C) Partial payment would reward intentional conduct; the loss is simply not covered.
- D) The entire claim fails because the injury itself was intentional, not just the medical portion.
Memory hook
Self-inflicted is self-denied. Fortuity is the bouncer at the claim's door.