Life Policy ProvisionsQuestion 157 of 315
If an insured dies by suicide 18 months after the policy was issued, how is the death claim typically handled under the standard California suicide clause?
a.The insurer refunds premiums paid but does not pay the death benefit
b.The full death benefit is payable as usual
c.Half of the death benefit is payable
d.The claim is denied with no refund
Explanation
California life policies typically include a two-year suicide exclusion. If the insured dies by suicide within those two years, the insurer is only required to refund premiums paid (less any debt). After the two-year period, suicide is a covered cause of death.
Law Reference: Cal. Ins. Code §10113Practice all 315 questions free — no signup required.
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