A hazardous activity refers to a recreational or occupational activity that is considered highly risky in the context of life or disability insurance. This includes car racing, horse riding, bungee jumping, scuba diving, hang gliding, construction work, and underground mining. However, current underwriting processes have allowed for greater leniency in terms of occupational activities.
Applicants who partake in hazardous activities may be denied a policy or may receive a policy that excludes the activities in question from coverage. In the case of the latter, the insurance company is also likely to impose a higher premium due to the higher risk.
Although applicants may choose to refrain from disclosing hobbies considered hazardous activities, insurance companies may find out during the underwriting process. For instance, medical records may indicate injuries sustained due to a certain hazardous activity. This may lead to an application being denied. If the insurance company does not find, it may not pay for a claim that results due to a hazardous activity that the insured did not disclose as a hobby in their application.
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