An applicant works in a high-risk occupation. The insurer issues the policy but attaches an endorsement excluding death caused by that occupation, refunding the premium if such a death occurs. This is an example of:

Why A is correct

When an applicant's occupation or hobby creates an uninsurable hazard, the insurer may offer a policy with an endorsement that excludes death caused by that specific activity while covering all other causes. If death results from the excluded activity, the insurer typically refunds the premiums paid rather than paying the death benefit. This is different from rating, which charges an extra premium while still covering the risk, and from riders that add benefits. The exclusion must be clearly disclosed, and the insured must agree to the endorsed terms.

Why the other options are wrong

• B) Guaranteed issue policies skip medical underwriting but do not add occupational exclusions; the endorsement here reflects underwriting on a specific hazard.
• C) A rated policy charges extra premium for substandard risk but still covers the hazardous activity.
• D) Riders add benefits such as disability income; the endorsement here subtracts a specific cause of death.

Memory hook

Hazardous job = coverage minus that one job risk, with premiums back if that risk kills you.