Legal Dictionary of Pakistan

damn-fool doctrine

Insurance. The principle that an insurer may deny (esp. liability) coverage when an insured engages in behavior that is so ill-conceived that the insurer should not be compelled to bear the loss resulting from the insured's actions. - Also termed damned-fool doctrine. "The damn foolish acts' concept is not a perfect predictor of judicial decisions, both because of its own imprecision and because other considerations, such as a desire to assure an innocent third party a source of indemnification, may influence a court. However, especially when ... the insured who acted foolishly has sufficient resources to provide compensation to the injured persons, analysis of a coverage issue on the basis of a damn fool' doctrine is frequently a very effective approach both to predicting and to understanding o"t comes." Robert E. Keeton & Alan I. Widiss, Insurar,= Law: A Guide to Fundamental Principles, Legal D~.: trines, and Commercial Practices § 5.4, at 541