10.1.3 Mental Incapacity

• Jurisdiction: Arizona

In Globe American Casualty Co. v. Lyons,^[39] the court held that an act of an insured cannot be treated as intentional if the insured suffered from a "derangement of his intellect which deprived him of the capacity to govern his conduct in accordance with reason and while in that condition the insured [acted] upon an irrational impulse." The court observed:

To hold, as appellees urge, that mental illness is irrelevant for purposes of determining whether an act is "intentional" is inconsistent with long standing policy considerations in insurance law. Exclusionary provisions are to be strictly construed against an insurer. [Citations omitted.] Further, to deny coverage for acts caused by an individual lacking the mental capacity to act rationally is inconsistent with a primary purpose for incorporating intentional injury exclusions into insurance policies, i.e., to preclude individuals from benefiting...