Colorado Life Producer License Practice Test

What does the results clause in an insurance policy exclude?

1. Death benefits if insured is not on active duty

2. Benefits for any death occurring during a military operation

3. Death benefits resulting from acts of war

4. Benefits for suicides and homicides

The correct answer is: Death benefits resulting from acts of war

The results clause in an insurance policy specifically addresses exclusions related to circumstances that can lead to the triggering of benefits, particularly concerning risks that are deemed too high or unpredictable. In this context, death benefits resulting from acts of war are particularly emphasized because they represent a significant risk factor that insurance companies prefer to avoid. Acts of war can encompass a broad range of extremely hazardous situations that are outside the normal scope of expected risks an insurance policy typically covers. By excluding these types of deaths from coverage, insurance providers manage their exposure to catastrophic losses that could occur in wartime scenarios. This exclusion is a standard practice in many insurance policies, helping to ensure the sustainability and profitability of the insurance ecosystem. The other options relate to different contexts or specific conditions that may also involve exclusions, but the clear and direct nature of the exclusion regarding acts of war is a crucial aspect of risk management within insurance contracts.