Under the Illegal Occupation provision, when is the insurer not liable for losses?

The insurer is not liable for losses under the Illegal Occupation provision when the loss is due to a felony or illegal occupation. This provision specifically addresses the risks associated with engaging in unlawful activities. Insurers aim to mitigate their exposure to dangerous or illegal behaviors that may increase the likelihood of claims. When a loss occurs as a direct result of such activities, the insurer typically has grounds to deny the claim, as the insured has engaged in behavior that is outside the scope of coverage and may contradict the terms of the policy.

In essence, when a claim arises from committing a felony or being involved in illegal work, it undermines the principles of risk assessment that insurance operates on, leading to a denial of coverage for those losses. This helps to ensure that policyholders maintain a standard of legal conduct, reinforcing the intention of life insurance to provide protection in legitimate circumstances.