This is a legit argument. If the purpose of the killing is to intimidate other insurance companies, it’s terrorism, and almost all insurance companies have an exception for terrorist attacks.
It’s also why we shouldn’t be as upset when mass-shooters aren’t called out as terrorists by law enforcement and politicians. There’s insurance implications.
I mean, we should be upset about that, just upset at the ridiculousness of the insurance to not pay the victims because of the specific views of the criminal.