State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under California Insurance Code Section 10206.5, a 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?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Section 10206.5 permits a group life policy to limit or exclude liability for losses relating to war or act of war, military or naval service, and aviation. These exclusions are optional provisions the policy may contain, and the California Insurance Commissioner may prescribe regulations governing their use. The provision addresses the special hazards that are difficult to price into a group life premium.
Why the other options are wrong
- B) After two years the group policy is generally incontestable, but that is a different provision; it is not a permissive exclusion under Section 10206.5.
- C) Occupational accidents are not the subject of this exclusion, which covers war, military service, and aviation.
- D) Driving under the influence is not listed in Section 10206.5 as a permitted exclusion.
Memory hook
Section 10206.5 lets group life say no to war, military duty, and flying. Three hazardous skies, one exclusion.