A life insurance policy excludes a hazardous avocation, such as skydiving, through a special endorsement. If the insured dies while skydiving, the insurer will most likely:

Why A is correct

When a hazardous occupation or avocation is excluded by endorsement, the insurer has limited its liability for that specific activity. If death occurs while engaging in the excluded activity, the claim is denied under the exclusion, and the policy typically provides for the return of the premiums paid. The endorsement makes the exclusion specific and known to the insured at the point of sale, which is why it must be called to the applicant's attention.

Why the other options are wrong

• B) A policy with a hazardous-avocation endorsement does not pay for deaths caused by the excluded activity; the exclusion is a valid contract term.
• C) Paying only the cash value is not the remedy for an excluded-activity death; the remedy is denial with a refund of premiums under the endorsement.
• D) Double indemnity would not apply, because the death falls within an exclusion rather than an accidental-death benefit.

Memory hook

Endorsement exclusion + excluded activity death = claim denied, premiums back. The policy politely says not this risk.