What is considered an intentional act in insurance terms?

In insurance terms, an intentional act refers to any action taken deliberately by the insured that leads to damage or harm. This is significant because, in most insurance policies, coverage for damages resulting from intentional acts is typically excluded. When an individual intentionally causes damage, the act is not considered a risk that insurance is designed to cover. For example, if someone purposely vandalizes property, the costs associated with repairing that damage would not be covered under a standard liability policy, as it stems from deliberate action rather than an accident or unintentional mishap.

The other choices illustrate scenarios that fall under different categories of actions. An accident involving unintended damage indicates unforeseen consequences typically covered by insurance. A negligent act implies a failure to exercise reasonable care, which may lead to coverage under liability policies due to the unintentional nature of the act. A minor misrepresentation on an insurance application could potentially affect coverage or claims, but it does not define an intentional act related to causing damage. Each of these circumstances highlights the distinction between intentional and unintentional actions in the context of insurance liability.