Under CIC Section 10206.5, a California group life insurance policy may provide that the insurer is not liable, or is liable only in a reduced amount, for losses arising from which of the following?

Why D is correct

Section 10206.5 permits a group life policy to exclude or reduce liability for losses arising from war or act of war, military or naval service, and aviation. These are voluntary, extraordinary hazards that would otherwise distort group pricing, and such provisions must be included in the policy to be effective. Pre-existing illnesses, workplace accidents, and age-related diseases are covered causes under group life insurance and are not among the enumerated hazards the statute authorizes a group policy to exclude.

Why the other options are wrong

• A) Group life policies do not exclude pre-existing illnesses; exclusionary provisions are limited to the enumerated hazards in the statute.
• B) Workplace accidental injuries are covered by the group life policy; the statute does not authorize excluding them.
• C) Diseases of old age are covered causes of death under group life insurance; only the enumerated hazards may be excluded.

Memory hook

War, military, aviation — the three adventure hazards a group life policy may lawfully sidestep.