Mississippi Property & Casualty Practice Exam 2026 – Comprehensive Prep Guide

Intentional losses are typically excluded from coverage in insurance policies. This exclusion is in place because intentional acts are fundamentally against the principles of insurance, which is designed to protect against unforeseen and accidental events. When a loss is intentionally caused by the policyholder, it undermines the contractual relationship between the insurer and the insured, making it inappropriate for the insurer to provide coverage for such events.

The rationale behind this is to prevent moral hazard, where individuals could exploit the insurance system by intentionally causing losses to claim benefits. Insurance policies often contain explicit language that outlines coverage exclusions for losses that occur as a result of intentional actions, ensuring that individuals cannot benefit from their own wrongdoing.

While some policies might allow for limited coverage under specific circumstances or require extensive documentation for various claims, the general principle remains that intentional losses are not covered, which aligns with the correct choice.