PSI Ohio Insurance Practice Exam

Which of the following is a common exclusion in disability income policies?

1. Injuries while committed a felony

2. Injuries incurred while commuting

3. Injuries resulting from a pre-existing condition

4. Injuries occurring while committing a misdemeanor

The correct answer is: Injuries occurring while committing a misdemeanor

In the context of disability income policies, common exclusions arise to limit the insurer's liability for situations that are deemed outside the realm of standard risks. One prevalent exclusion is related to intentional or criminal activities, which is reflected in the focus on injuries that occur while committing a misdemeanor. Disability income policies typically exclude coverage for injuries incurred during the commission of a crime. Misdemeanors are less severe than felonies but still fall under illegal activities, thus any injuries sustained while engaging in such actions often result in a denial of claims. Insurers implement this exclusion to protect themselves from underwriting risks that are voluntary and preventable, acknowledging that individuals engaging in illegal activities are taking on a level of risk that the insurance policy is not meant to cover. In contrast, injuries from commuting may be covered as long as certain conditions are met, injuries from pre-existing conditions are often excluded due to the moral hazard they introduce, and while injuries from felonies are certainly excluded, the focus here is specifically on misdemeanors. This highlights the nuances in policy language and the importance of understanding the specific exclusions contained in disability income insurance.