What happens if an insured engages in an illegal act according to the illegal occupation provision?

When an insured engages in an illegal act, the illegal occupation provision generally results in the denial of benefits for any injuries sustained as a direct consequence of that illegal activity. This provision is included in insurance policies to prevent individuals from benefiting from actions that go against the law, as it promotes ethical behavior and discourages illegal conduct. It clearly delineates that insurers are not liable to pay for claims arising from illegal actions, which helps protect the insurer from having to cover risky behaviors that could lead to higher claims costs.

This provision emphasizes the fundamental principle that insurance is intended for lawful activities and that those who knowingly partake in illegal actions cannot seek compensation for injuries resulting from those actions. The denial of claims in such circumstances is in line with the broader policy intent to maintain fairness and avoid insuring against unlawful behavior.