Arizona Life and Health Practice Exam

When considering disability coverage, which injury type is generally excluded in many policies?

1. Injuries from accidents at work

2. Chronic conditions like arthritis

3. Intentional, self-inflicted injuries

4. Injuries caused during recreational activities

The correct answer is: Intentional, self-inflicted injuries

Disability insurance policies often have specific exclusions related to the nature of an injury. Intentional, self-inflicted injuries are commonly excluded from coverage because they are seen as a result of the insured's own actions, which the insurance provider did not underwrite. The logic behind this exclusion is that allowing coverage for such injuries could lead to moral hazard, where individuals might intentionally harm themselves with the expectation of receiving benefits. In contrast, injuries from accidents at work are typically covered under workers' compensation insurance rather than disability policies, chronic conditions like arthritis might be treated differently depending on the policy specifics, and injuries during recreational activities might still be included based on the nature and context of the activity. The exclusion of self-inflicted injuries is a standard practice to maintain the integrity of the insurance system.