Policy Riders, Provisions, Options, and Exclusions
An insured whose policy carries a standard aviation exclusion dies as a fare-paying passenger on a scheduled commercial airline. What does the insurer ordinarily pay?
Answer and explanation
Answer: C. Standard aviation exclusions target non-commercial exposures such as private piloting, student flying, and military aviation. Death as a passenger on a regularly scheduled commercial flight is a covered loss.Source: NAIC Life Insurance Buyer's Guide — Policy exclusions: aviation and commercial air travel
More policy riders, provisions, options, and exclusions questions
- Why is naming a minor child directly as a life insurance beneficiary problematic?
- A beneficiary asks which part of the policy states the insurer's core promise to pay. Which provision should the producer point to?
- A beneficiary selects a straight life-income settlement. Which tradeoff is most important?
- A beneficiary wants equal installments of proceeds and interest for a selected number of years. Which settlement option fits?
- A buyer compares annual and monthly premium modes for the same term policy. Which cost point should the buyer verify?
- A cash-value policy has an elected automatic premium loan provision and an unpaid premium at the end of the grace period. If sufficient loan value exists, what occurs?
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