An insured covered under a life policy containing a STANDARD 'war exclusion' (results clause) is killed while serving as an active-duty U.S. military member during a declared war. Under the typical war clause, what is the insurer's obligation?

Explanation

A war exclusion (also called a 'results' or 'status' clause) is an optional provision permitted under California Insurance Code §10110 et seq. and policy forms. The 'results' variant excludes death that results from an act of war (declared or undeclared); the 'status' variant excludes death while the insured is in military service. When the exclusion applies, the insurer's liability is generally limited to a refund of premiums paid (often with interest) rather than the full face amount, which is the correct outcome here. Paying the full death benefit because underwriting already priced military service would apply only to policies WITHOUT a war exclusion. The 50% wartime reduction of the death benefit is fabricated. And the war-bonus rider said to attach automatically in wartime is invented; there is no such rider. Always check the specific contract wording: many modern California policies omit war exclusions or limit them strictly.