Mississippi Property & Casualty Practice Exam

A loss is considered "intentional" when it results from intentional acts of the insured. This means that the individual committing the act had the deliberate intent to cause damage or loss, whether it be through acts like arson, fraud, or other forms of purposeful harm. In the insurance context, intentional losses are typically not covered by standard insurance policies, as insurers exclude coverage for losses that arise from willful misconduct. Understanding this distinction is crucial for both policyholders and insurers, as it directly impacts claim eligibility and the overall assessment of risk.

Identifying a loss as intentional helps to clarify the intent behind the action, thereby influencing the underwriting process, claim investigation, and potential legal ramifications. Therefore, recognizing that the insured's willful actions lead to the loss is key to understanding coverage exclusions in insurance contracts.