State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 3/5
A group life policy contains a provision stating that the insurer is not liable for losses arising from military service or aviation activities. Under California Insurance Code Section 10206.5, such a provision is:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
California Insurance Code Section 10206.5 expressly authorizes a group life policy to provide that the insurer is not liable, or is liable only in a reduced amount, for losses arising from (a) war or act of war, (b) military or naval service, and (c) aviation. These are recognized extra-hazardous exposures that a group insurer may carve out of coverage. The exclusion must appear in the policy, and it operates to limit the insurer's liability for those specific causes without affecting coverage for other causes of death.
Why the other options are wrong
- B) Group life insurance does not cover every cause of death. Section 10206.5 specifically permits group policies to exclude losses arising from war, military or naval service, and aviation.
- C) Section 10206.5 permits the exclusion without requiring an extra premium charge. The exclusion itself is a policy term that limits liability for the specified causes.
- D) The exclusion applies to the covered group generally. It is not limited to employees under any particular age or to any class within the group.
Memory hook
Group war clause = permission slip to exclude: war, military service, and aviation can be left outside coverage.