State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under California Insurance Code Section 10206.5, a group life policy may provide that the insurer is not liable, or liable only in a reduced amount, for losses arising from:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Section 10206.5 expressly permits group life policies to exclude or limit coverage for conditions relating to war or act of war, military or naval service, and aviation. These exclusions let insurers avoid the catastrophic and unpredictable losses of wartime and high-risk aviation. Any exclusion must appear in the policy, and the Commissioner may prescribe regulations governing their use.
Why the other options are wrong
- B) General illness is not the subject of the Section 10206.5 exclusion; the statute names war, military service, and aviation.
- C) Preexisting conditions are not the specific exclusion authorized by Section 10206.5.
- D) Foreign death is not an authorized exclusion under Section 10206.5.
Memory hook
Group life can bow out for war, military service, and aviation. The dangerous trio under Section 10206.5.