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. War clauses are uncommon today in peacetime but may reappear in wartime issues. Option A would apply only to policies WITHOUT a war exclusion. Option B (50% reduction) is fabricated. Option C is invented; there is no 'war bonus' rider. Always check the specific contract wording: many modern California policies omit war exclusions or limit them strictly.
Law Reference: California Insurance Code §10110 et seq. (policy exclusions); standard war clausePractice all 315 questions free — no signup required.
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